Transition from Residential to Commercial

[Hal Cranmer]

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

[Brandon Turner]

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.

[Steve Babiak]

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 ...

[Michael Seeker]

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

[Hal Cranmer]

Great guys - thank you very much. I will definitely look into all of those!