All Forum Posts by: Robert Rixer

A lot of multifamily's especially larger ones will transact outside of the MLS. Check Crexi and Loopnet as a start. A lot of commercial/multifamily brokerages will only advertise their listings on their own website so identify who these prominent multifamily brokerages are in your area and subscribe to their email list or just check their inventory periodically. That's a good start.

I've had this before with in-place rents at $800 and market rents at $1200. Raised rents on existing tenants to $1150, a little below market. Some got mad and threatened to leave but when they had a look at the market they decided $1150 was still a good deal. Those that couldn't afford it, left but those tenants would not have been viable long term tenants anyway.

Quote from @John Michaels:

Quote from @Robert Rixer:

You have to be careful with these lists. If rents are high compared to sales price, then you have to ask - why aren't these renters buying? The answer is usually due to no savings, poor credit score, lower income, etc. If this is your tenant base then your rent roll may be high but your probability of actually collecting that rent roll number is low.

 That's a good point but isn't the main reason people rent vs not buying a lot of the time is because they don't have the down payment?

Yes, as I said, no savings (or saving ability). The highest median sales price on that list was Lubbock, Texas at $156,000. You can put as little as 3.5% as your down payment. You're telling me that someone can't scrape together $5,460 to own their own home and be in a better financial position than renting? Again, that's the kind of tenant base you will be dealing with.

Do you have a link to it?

Don't do it. If you are questioning "headaches" at this point then you're not in the right headspace to be doing this, let alone your lack of experience. Start small with a SFH or duplex and then work your way up.

You have to be careful with these lists. If rents are high compared to sales price, then you have to ask - why aren't these renters buying? The answer is usually due to no savings, poor credit score, lower income, etc. If this is your tenant base then your rent roll may be high but your probability of actually collecting that rent roll number is low.

@Shawn McCormick @John O'Leary Thanks for the responses. 2 people recommending Colleen Pacheco - I'm sold

I know Florida property insurance is wild right, but has anyone found more success with particular insurers over others? I am underwriting a Quadplex in Miami specifically. Since it falls under residential, I've called Allstate but I know there could be other alternatives who may be better suited to this type of product. Any suggestions or past experience would be helpful. Thanks!

Get some experience under your belt doing a quad, duplex or even a SFH on your own. Investors are unlikely going to invest with someone with no track record. Also, if you're starting out from the ground floor, you're going to spend all your time going out and raising funds and very little time in honing your craft as a successful operator. What is your competitive advantage over seasoned and experienced operators? Get a small success under your belt first, then go out and raise money!

Getting seller financing boils downs to sales. It's not necessary you form a relationship with the seller but it definitely doesn't hurt. They will be more willing to seller finance if you have built trust and rapport with them.