All Forum Posts by: Rod Khleif

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@Michael Krystoff

Hi Michael, welcome to the forum and getting started in real estate investing! Both California & Florida are huge states that will have tens of thousands of properties for sale. To get someone with local knowledge who's willing to help I'd suggest you really narrow down your investment criteria.

An example of that would be, "I'm looking to buy 2 - 4 unit properties in "B & C" areas in Orange County Florida. I'm an out of state investor so I'd prefer minimal rehab/repairs. I'm looking to achieve a cap rate of 8 or better with cash on cash returns of at least 12%."

I'd also suggest researching small commercial multifamily properties, 5 - 30 units, and learning the benefits of that asset class. Investing in commercial properties has many benefits over residential.  

@Robby Roden

Hey Robby, most of the 200+ unit properties being traded are going to be by the same 2 - 3 brokers in the marketplace. Typically the larger property market is controlled by the same few brokers, and in turn, that's who you need to network with. Tell them you have buyers interested in properties that they recently listed and sold. Take them out to lunch and get to know them.

I'd highly suggest putting most of your focus into building those relationships. You can also reach out to the 200+ unit owners via direct mail and cold calling, but those owners are already getting heavily marketed to by both brokers and investors.

@Richard Carr

Hi Richard, as Greg mentioned there's too little information to make an informed decision. Based on what you said, I would suggest you determine and/or do the following:

- Why is the property 80% occupied? Are there down units? Is there no demand?

- To test demand run a "teaser" ad on Craigslist advertising the units

- Why is the population declining? No jobs/industry? I'd suggest researching who the top local employers are. Make sure there's several and that there's diversity. You don't want to be stuck in a one horse town

@Aaron Cayabyab

Hi Aaron, as others have said many agents and lenders aren't fully aware that FHA does 2 - 4 unit properties, and in turn they'll often shy away from working with someone who's looking to do that. I'd suggest to keep calling lenders until you find one who has worked with multifamily FHA before. You'll find that if leases are in place a portion of those rental amounts can be used to help you qualify.

@Blake Alexander

Hi Blake, I'd suggest you ask your client why he is set on a 4plex and if he'd be open to looking at other deals, i.e., small commercial 5 - 10 units. I'd also explain to him/her exactly what you told us, in that most deals in the area require 40% down to cashflow. You can run the numbers for them and show them what it's going to take to cashflow. Don't just tell them your opinion, provide facts and real deals in the area.

Your best bet may be to look outside of your submarket into more rural/satellite towns/tertiary markets. Pull a couple properties from a few hours away with numbers that make more sense and see if they're interested.

@Dwight Jackson II , yes I'd suggest getting some local contractors & architects to take a look and provide bids for what you're looking to do. Once they do that, then yes, I'd suggest crunching the numbers and making sure the deal makes sense. 

@Christopher Anello

Hi Christopher, I am a firm believer in house hacking and highly suggest it to those just getting started in multifamily.

It's the perfect way to learn the business from a very "boots on the ground" approach. Financially, it's also a home run. If you're in the situation to house hack or on the fence about it I'd suggest researching FHA loans and getting started!

@Dwight Jackson II

Hi Dwight, there's a lot of questions in your post and I'd suggest really educating yourself before taking action. A few of your points don't add up either like a 20 unit building for $15k and wanting to reduce the number of units from 20 to 12.

Bigger Pockets is an excellent resource and you should spend as much time as you can on the site. I'd also suggest you listen to multifamily specific podcasts and read multifamily specific books.

@Chris Tracy

Instagram is definitely not just for teenagers as you pointed out, but I spend more time networking and building relationships on Facebook.  A lot of people, myself included, have built some lifelong relationships and are doing deals with people they met on social media. Whether Instagram, Facebook, or both I'd suggest investing some time into them. The key is consistency and providing value.