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Updated over 1 year ago on . Most recent reply

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Making the move to multi-family/commercial space

Posted

Hello fellow investors! 
I am a long time worker and a first time poster. I have been dabbling in passive real estate investment for the last 10 years. Basically we bought a foreclosed property and Rehabbed it and currently runs as an Airbnb. During this time, we also purchased a commercial property cash and rehabbed it. it is now a freestanding commercial space that is rented out. The house is worth about 350k (no mortgages) and the commercial property about 250k (no mortgages) 

I would like to leverage these properties into making the next leap into multifamily and flex space properties. I have no experience in either, but I do feel like I have enough experience in building and permits, etc. I do have a full-time job so working for a broker/builder etc. is not the solution for me. My question is how do I make this next week? Do I buy a large multi family property or do I stick with what I know and continue investing in smaller, multi families and smaller commercial spaces. I am also interested in flex spaces and storage facilities. I guess I just wanted to pick your brains and your experiences in this field. where do I start? 

Thank you for taking the time to read my post


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Andrew Freed
  • Investor
  • Worcester, MA
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Andrew Freed
  • Investor
  • Worcester, MA
Replied

@Mashel Mughal-Sultan - Either way, if you're trying to grow, you should be leveraging the equity in both of those properties. Regarding whether you should go big, the bigger deals are not that much more work but you gain that many more units. I'm always for going for the bigger stuff. But in that regard, I do recommend taking on something easier to start. Maybe a 6 family that is conditionally in good shape but has tenant management issues. Take on something easy and build up the difficulty in a new space in real estate investing. Just like running, you have to learn to crawl and walk first. I recommend the same approach to investing in different asset classes in real estate. 

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