Preparing myself for my first apartment

[Michael Williams]

What preparations should I start to make before I purchase my first Multi-Family property in 2022? What systems should I have in place? What contacts should have in place (Lawyer, property manager, insurance agent, etc.)? I plan on self managing however if something were to come up and I had to hire a firm to manage for me should I get bids now? How is it different mentally from having 2 units to increasing to 7 or more units?

[Scott Mac]

Originally posted by @Michael Williams:

What preparations should I start to make before I purchase my first Multi-Family property in 2022? What systems should I have in place? What contacts should have in place (Lawyer, property manager, insurance agent, etc.)? I plan on self managing however if something were to come up and I had to hire a firm to manage for me should I get bids now? How is it different mentally from having 2 units to increasing to 7 or more units?

Hi Michael,

Before embarking on this part, you might want to have your down payment ready to go in cash.

And be pre-quailified by a lender for $X--and have the lender ready to go.

That will steer you into the number of units you can buy, and also allow you to speak to these people with concrete authority that you are going to be an owner (employ them) vs just some guy ringing their phone off the hook.

Having the loan ready to roll will also tell you if you MUST use a management company or if they will let you self manage.

Line up a Down payment, a Lender, a Manager, a RE Tax Pro, an eviction attorney, (If you are going to LLC talk to an asset protection attorney about this then talk to the Tax person).

Good Luck!