Starting out in Multi Family - What were your first steps?

[Colin M.]

Hey there -

I've posted multiple times on BP but find myself looping back to the start of my journey every time. At first i was searching SFH's in Charlotte but never took action. Now Im looking at MF buildings in Cleveland, yet to still take action.

Im a NYC based investor whos desperate to get out of the rat race but feel like Im looking too deep into markets or properties and stuck in analysis paralysis.

Im asking you guys...

As a person starting out investing, what should i be doing first? Searching Loopnet for properties and making offers, reaching out to agents to help send me properties... or just doing research on learning the business terms etc. Like how do you know what cities to start looking in, what markets are safe, good ROI markets.... Where do you guys look or start off yourselves? I like Cleveland as it shows to be a growing yet affordable city but yet I've never been. Should i go off my research and make offers, or visit multiple cities to get a personal feel for them!

What have you guys (who own property in out of state) done in your careers?

[Matthew Irish-Jones]

@Colin M. you should figure out your financing first.  Will you buy with cash or will you finance?  After that find a legitimate realtor or PM in an area that fits your needs.  Rust belt cities like Cleveland and Buffalo are generally, cash flow positive and have a low Capital barrier to entry.  That's what makes them attractive for new investors.  That does not mean you cannot buy a lemon and lose a lot of money.

If you have done your research and have a reputable, agent, property manager, inspector, lawyer, and lender.. you have a multilevel decision making process and everyone signing off on their respective aspect of the deal.

I don't know that buying a double is going to get you out of the rat race but, if its a good area and you take care of it, you will be better off with it than without it in 20 years.