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Updated over 11 years ago, 06/30/2013
Transition from Residential to Commercial
Hi-
I've been investing in residential properties since 2006. I have flipped four properties and currently own 8 rentals, mostly duplexes, triplexes and a couple SFR's. I'm about to acquire another duplex and a 4-plex. I say this to show I am a reasonably experienced investor.
My realtor came to me the other day and said he may have 2 11-unit apartment buildings in about a year if I am interested. The owner is getting up there in age and looking to retire.
So if I have a year (at least - maybe I pass on these), what would people on this forum recommend for me to read/study/learn about commercial real estate and apartment investing in general? If not these apartment buildings it might be good to find some others.
Any help would be much appreciated.
Thanks
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#3 Questions About BiggerPockets & Official Site Announcements Contributor
- Investor
- Maui, HI
Hey Hal Cranmer I love larger multifamily properties like this. It's really not any more difficult than the smaller ones - but you can offer a rent-discount to have a tenant take care of maintenance (freeing you up even more.)
My favorite book on this is "The ABCs of Real Estate Investing" and "The Advanced Guide to Real Estate Investing" - both Rich Dad books. Also - John T Reed has an amazing book on managing them - How to Manage Residential Property for Maximum Cash Flow and Resale Value.
Maybe learn about the 1031 exchange to "trade up" - just in case you don't have the money in place to take on those buildings, but you do have the desire ...
Commercial Mortgages 101 by Reinhard was an excellent read for the financial end of things. To me, that is the biggest difference between 4 units and 5+...as Brandon Turner mentioned, the management isn't much different than with smaller properties, if anything I've found larger properties easier to manage than smaller ones that are spread out.
Link: http://www.amazon.com/Commercial-Mortgages-101-Everything-Winning/dp/0814415075
Great guys - thank you very much. I will definitely look into all of those!