Struggling for direction

[Nathan Spradlin]

I own a few properties and looking for my next purchase. I'm struggling with direction and focus. I'm newer to the game but don't want to limit my mindset because of that. I've looked into small mobile home parks, single family Brrrr and multifamily of 8+ units. I have some capital and want to get the biggest bang for my buck to jump a head but I keep switching directions and getting nowhere. I keep thinking if I can use my capital and leverage up to buy a bigger property that would be better then putting it into a SFH or duplex. With $80k-$100k should I go for the multifamily? I'd like to get a 12 unit or more with $200 CF per door but realize I'm going to need to bring in partners or get seller financing with lower down payment. Just looking for some ideas and direction from the experts out there.

[Brenden Mitchum]

@Nathan Spradlin

Ah shiny object syndrome - I know it well. There are really so many options in the world of real estate that it is easy to be tempted to jump from one to the other. This is even easier when you feel like you aren't really getting anywhere with one of the strategies. If you have not already done this, my biggest piece of advice would be to develop a 5-10 year vision. Start with an idea of where you want to be by age x. Then work backwards building some goals along the way. Eventually a path will form. Within this path will likely only fit a few options. For example, if you'd like to replace your income in 5 years, this might be tough with SFR so scaling up to larger MF might be an option here. Mobile home parks and self-storage would also likely work in this scenario. But now you also know that you probably need to JV or syndicate to scale up in that limited timeframe.

I think understanding your market really helps here too. Maybe self-storage is over-built in your area and the apartment space is approaching a bubble? Alright, so that narrows it down further. Perhaps you could BRRRR some SFRs and small MF or you could get in on a mobile home park. Then the question would be, do you want to do a bunch of small deals that each tie up your capital for 6-12 months or do you want to do one big deal that ties up your capital for 2-5 years? Both strategies will likely work just fine depending on your area.

This is just an example of how I would mentally walk through this process. For me it came down to two things. 1. Where do I want to be in 10 years? 2. For my market, what would be the most effective investment strategy to get me there?

Narrow it down to a few, do a bunch of research on each to make sure you have a decent grasp. Then just pick one and stick with it. Sticking with an educated decision is more important than making the right decision.

Hope this helps a bit. Please feel free to message me anytime if you have questions or just want to chat!