All Forum Posts by: Matthew Masoud

Converted all MTR back to LTR. Got tired of managing MTRs even though strong cash flow. Sold a lot of those multifamily buildings and bought commercial strip centers.

Ask me Anything.

It was mostly apartments in the first two years, and it's mostly commercial now. Bigger pockets has given me so much thought that I'd take a few hours to give back. 

Depends on the asset class:

Retail - Traffic counts >15k on direct road, population density >7,000 1mi raidus

Multifamily - Household income >$50k, population density >10,000 1 mi, jobs (harder to quantify).

Industrial - Harder to have rules of thumb for area but be careful of lots of vacant land surrounding it or lots of new builds in the area. Industrial is easy to build to overbuilding is a real threat. You want 16ft+ Ceiling height and 3 phase. More dock doors the better.

Office - Don't do it.

PM me if you want to go into deeper details on any of these. Bought them all except for office.

Can still be done in today's interest rates.

Hotels are the baby of real estate investing and running a business.

Unlike any other commercial asset class, hotels are extremely labor-intensive to run but can spit off ridiculous cash flow. The value of the hotel is based off of how well it's being operated.

My advice would be to get a job in the hotel industry. Even if it's cleaning rooms, get a feel for the operations. Learn what PIPs are and how hotels are evaluated. 

Then save up as much as you can and buy a small 6-15 room motel or partner to buy something larger

Hotels are really expensive to get into as well. Which is why you may want to consider starting in multifamily and convert them to airbnbs which is what I did for a while.

Best of luck to you. 

I've never spent money on inspections/environmental before having the property under contract. Sharing leases, profit and loss sure but no inspection. 

BRRRR is much easier doing commercials. I started with multifamily but price expectations have gotten out of control.

Just refinanced my multi-tenant retail property and pulled out much more cash than I put in. 

 This is the key to recurring business. 

I think for the vast majority of STR owners your advice holds, that it's not worth the time. Once you get passed 3 rentals and want to keep scaling and really build a business out of it, it's time to get that site up!

Cheers!

 Great idea. I’ve been saving phone number details from airbnb