Purchase First 40-50 Unit Plex

[Robert Shoffner]

I've been invesing in SFH for about 7 years and would like to get into my first large MF property have about 12 properties with 14 doors total). I've also been wholesaling a few years and doing a SFH rehab here and there.

I've been listening to many of the BP podcasts and what did and din't work for others. I always enjoy listening to them on my flashdrive while driving around. Loaded with good tips and information. I can relate to a lot of it.

I have from $100k+ of my own funds (maybe more) but I want to get into 40-50 units so I can have an onsite property manager and maintenance person.

Any tips of what I can be doing now to prepare for a MF property over the next 6-12 months?

I know the area is obviously a huge big deal, like with SFH. Any tips would be greatly appreciated. I'm patient so if I have to take several steps now to be ready in 12 months I'll do it.

Its important to prepare one's mind first, and then the reality will follow (assuming one is willing to take action). So that's where I'm at now.

[Joe Fairless]

@Robert Shoffner - how exciting! Congrats on taking the big next step to multifamily. With your background in single family homes, I'm going to assume you already have a market identified. So, using that assumption, I recommend you run the #s on 100 sample properties in that market. You can find them on LoopNet, broker websites, etc. The purpose of the exercise is to gain a good understanding of:

- price per unit

- cap rates

- being familiar running numbers so you can do it very quickly

- identify any terms you're unaware of

- see which amenities are being offered in your market

- see the types of deals being offered

There's plenty more to do (especially if you end up doing deal syndication but it doesn't sound like that's a focus of yours) but that would be my next step if I were you.

@Ramon Jenkins thx for the shout out!