Couple questions about multifamily.

[Adrie Moses-bailey]

Hey BP,

I have a couple questions for doing my first MF deal and am hoping someone with experience can answer. Over the next 9 months I want to purchase a first MF residential building (10 units or more). I will intend finance it by raising around 2-300k in equity and look to borrow the rest to fill out the capital stack (75-80% LTV).

My question is what sort of reserves are needed at this property size? Or are reserves needed at all? What has been your experience? 

Also what have you seen in terms of the acquisition experience when it comes to lawyers and all the other closing expenses? What do you budget for these and at what point in the process does the money for these start flowing out. On the deals I work on this stuff is usually just wrapped into a closing cost line item and paid for as part of the loan but obviously there is expense before that point as well.