All Forum Posts by: Zachary Ware

I do not have any experience with sober living rentals but can imagine that they would be hard to finance. If you expect to refinance in the near future, I would take this into consideration.

I would echo the other's comments here to repaint as needed. A lot can be solved with touch-ups of the same paint in-between tenants. If they have been in the unit for a number of years and it needs repainting, then I would move forward with repainting the entire unit.

I think the amount of websites you can find multifamily properties on is very limited, especially as you get into larger properties. Below are some that I have seen all types of multfamily on.

LoopNet, Zillow (recently saw a 34 unit property for sale, Redfin, Realtor.com, Craigslist (very uncommon but happens), and Auction.com. Outside of websites, connecting with local brokers and agents in your target market is probably your best bet.  

Congratulations on your first deal! 

What about your first project turned you off to the development aspect of investing and made you turn towards multifamily? 

Hey Alexandra, 

I am a little late to the party on this one. Did you close on the property and if so, what kind of financing did you use?

Is this your and your son's first investment property?

Hey Nolan,

Here in Austin, a lot of the duplexes are up to $800k or even $1 million. At this price, many do not cash-flow with high leverage and as you said, you need to basically buy them cash or at least put down a large down payment. Personally, I will start my analysis with the sale price if I am looking on MLS and work the number down until the property meets my investment criteria. Since you are looking to live there you can also analyze the property a little differently. Look at how much you would be coming out of pocket to buy the property and live there, and compare this to what you are paying in rent. If you are putting less money towards the mortgage than you are in renting, you can see this as a win! Using different strategies such as buying an under-market property in need of heavy rehab can also make help the property CF once you stabilize but you are not likely able to use an FHA loan is there is heavy rehab required. With property values where they are, these properties are tough to pencil out and you have to get creative.

I would look into your "competition" and see what they are offering. Do they have onsite amenities that are attracting more tenants that you do not have? What kind of concessions are they offering? You can call around and even visit other properties as a prospective tenant to see what they are offering. 

I use the BP rent estimator and then look through Zillow or other active for rent properties to verify numbers. I will usually categorize into 3 buckets, nicer than subject, about the same, and not as nice as subject. This is a lot easier when there are interior pictures. Try and look at the comps that are about the same condition. 

Welcome to BP! Sounds like you already have a plan and are doing well! I definitely recommend to join as many RE related meetups as you can and starting to network early.