11 units in bowling green chance to buy.. Green or red light?

[Peter Shafik]

Hey all! I'm looking for some expert advice on this matter. The company I work for has recently acquired 2 quads and a triplex All on the same lot and I'm really thinking about buying it with hard money, use the company I work for to rehab it (maybe) and then refi to pay off a HML. I acquire contracts (like a wholesaler) for them. My issue is 2 fold:

1. I don't precisely know how to analyze a market. I've just had so much analysis paralysis on the matter, that I just call and acquire where they tell me too. I understand some of the basics, but I feel like getting confirmation from an expert will really help calm my over analysis. After this tornado hit recently, I was told that values of homes go down significantly (not sure if that's true). The properties we not affected by the tornado. 

2. I'm not quite sure if I will qualify for this refi because my DTI might be around 41%. That's including the rental income and my current day job. Not sure if that will be appealing to any lender. On top of that, I don't have much reserves. I know Brandon, David, and Scott always harp on the fact you should use OPM only if you have reserves to back you up.

Should I take on this project? Thanks!

[Shai Flax]

Hi @Peter Shafik, as I understand, that will be your first investment property, right? If so, I would def recommend not going that big on your first one... 

I always tell people that I'm helping that in my opinion you should start with an SFR, understand the investment, and then move on. As I've realized, small MF is very different from the SFRs, you are paying on a whole lot more than a single-family.

Also, you said that you are not that familiar with the area and REI so you can fall much harder when starting with 11 units and not one, that can be overwhelming.

Again, this is MY opinion. I'm wishing you the best of luck!