I have 500k to invest in Multi Family....

[Michael Figueroa]

500K should give me about 2.5 Million in real estate. Where should I be looking? I live in California, and 2.5 Million doesn't go very far here. Also any general advice from experience you can lend me so I don't make your mistakes. Wish me luck! 

[Chris Blackburn]

Yes, banks are using DSCR (Debt Service Coverage Ratio) 1.3+, and we are seeing below 70% LTV with our projects. If I were you, skip the multifamily and do micro-flex. 500-1000 sq ft warehouse spaces in a larger building. 1 man door, 1 roll-up door, 1 shared bathroom. Offer free wireless. You will get a lot of small start up businesses, contractors etc. They will need more parking than you can provide. Not sure what the rates are, but $1-2 a foot for a tin can warehouse has very upkeep. No evictions. Lots of demand. If you really want to make a dent, get a piece of property with extra land to build on. Give each space an actual address, and you are really making some headway. (Of course, mini-storage is great and i have some other amazing solutions, but that is another story) Oh, have I done this? Yes, I have. I find adaptive reuse a great opportunity as well. Currently converting an old cannary, fruit processing company, low security prison (this is a big one!).