Where to Start in Multi-Family Investing

[Jeff Lubeski]

I have a few SFH rentals currently and have been investing for a couple of years. I would like to move to larger multi-family units (20+ units). I am lacking in the knowledge to invest in these larger size housing units. Where is a good place to start gaining knowledge to make the transition? Books, classes, etc?

[Joel Owens]

Books are great. Working with brokers/agents who specialize in that asset class and are also investors is even better.

Lot's of overpriced and marginal properties out there in multifamily as well. The deal structure is just as important as the price because you get more into the income approach versus the sales comparison approach with SFR.

How hands on you want to be, what returns you can find locally in your market, and you long term goals are key.

I have some clients that want more yield and are willing to deal with headaches to get it. I have others that are business owners or high level professional who are happy with a quality asset at a 7 to 8 cap and want 50 units or more to be hands off with structure in place. Local investors who do it full time do not mind owning 10 here or 8 units there to group in a 2 mile radius etc. It all really varies on the individual and what they want. You have to figure out what you are willing and not willing to do and develop a plan from there.