going from single family to multifamily

[Chris Simmons]

I have dealt exclusively with single family up to this point but recently got interested in multifamily.  I first thought I would by 4 duplexes side by side but when the numbers did not work out, I moved onto an 8 unit apartment building....(2 quad-plexes) but ultimately got outbid.  

What do I need to know about multifamily in terms of buying them right? Almost everything I see is priced too high. In looking at financing, with a 20% down payment, if they can beat 1.2 DCR, it isn't by much and most only hit about .75.

Do I just need to be patient and wait for sellers to get realistic or am i looking at these deals wrong.  I understood multifamily to be more efficient and yield better numbers.  With what I am seeing in my Tulsa market, I am better off sticking with distressed single family units that I rehab, let season and cash out refi after rented.  

What's the deal with breaking into the multifamily market?

Thanks

[Jean Bolger]

You may have just hit some unfortunate timing in your local market. Are these things selling at these inflated prices? If you find one that has been on the market a while you might try making an offer based on your own analysis; disregard the asking price. Sometimes owners will just list at a pie-in-the-sky price hoping someone bites... They may be serious about selling, they may not