All Forum Posts by: Ryan Cox

Welcome to BP!

Jason -

Working for free and dedicating a large amount of your time is great, but as a MF investor I would have to ask what VALUE you would be able to bring to the business?  Based on your research, where do you think you would be able to add value to a MF investment group?

As a 1st step, I would suggest networking at your local REIA clubs and find investors who are actively investing in MF. Buy them a cup of coffee or lunch - ask how they got started, what tasks or activities can you take on for the local investor and go from there.

Welcome aboard!  Tons of amazing resources and people on the BP boards.  Ask of ton of questions!

Great place to start would be the many local REIA's in Austin!

I agree with the essence of @AndrewMichael post - 

1. Attend your local REIA & Network events

2. Find an experienced investor in market and bring a deal and/or put in work for equity in a deal.

3. Repeat until you have capital & experience to deploy in your own projects.

A few multi-family books that I enjoyed and I think would help you build out your step by step plan.

Emerging Real Estate Markets & Multi-Family Millions by Dave Lindahl

The Complete Guide to Buying & Selling Apartment Buildings by Steve Berges

A few questions I would ask in considering an offer:

Do you have a current rent roll for the property?  I would base my offer on what the property is currently producing and not based monthly rent when all units are rented of $7,050.

In addition to leasing up the property, what are the opportunities to add additional value to the 12 units?  What are comparable properties renting for in the area?  When was the property built?  The older the property the higher the expenses (expense of 43% income would be low for an older property).  Who is paying the utilities?  Is it All Bills paid?

Hi Kenneth - I would narrow the focus of investment you want to concentrate on then build a plan based on that investment.  What works for generating leads & who needs to be on your team will be somewhat different for each type of investment.  Become an expert in a specific investment type and market.  Once you are proficient in that skillset you will be in a position to add additional acquisition and investment vehicles to your strategy.  Good luck!

Hi Frankie,

If I was just starting out and looking to start in multi-family, my plan would be to buy a 4-plex.  Live in one unit and rent out the other three.

https://www.biggerpockets.com/renewsblog/2008/05/22/my-advice-buy-a-4-plex/

A number of BP members have seen tremendous success executing this strategy.

Good luck, RC

Hi Joe,

A few questions to ask yourself when analyzing this property.

1.  What are your goals for this property?  What is your exit strategy?

2. Do you want to put down 50% as a down payment?  Why not leverage this capital to get into a larger property?

3. What are you anticipating the annual expenses to be?    A conservative estimate would be 50-55% of the gross scheduled income for a property built in the early 80's?

4.  Who pays the utilities?  Owner or tenants?

5.  What kind of neighborhood is the property in?  What kinds of properties are you competing with?  What kind of work and how much will it cost to achieve market rents?

Just a few thoughts.  Hope this helps

Good luck! RC