From Duplex to something bigger Maryland

[Kelly Bettendorf]

I'm looking at the idea of jumping from my two unit duplex to a larger multi unit property since there are a lot more options for them in the Maryland area and i feel could work better then trying to buy multiple smaller single family homes, condos or rowhomes (town houses). Being newer to the game and still learning I've been looking at targeting multi family properties that are in size of up to 14 units and maybe a little bigger if its the right deal. I really wanted to focus on investing in duplex and triplex's, but as im sure you are all aware finding duplex and triple's in Maryland don't come around enough.

Id likely be looking to find properties that would be willing to offer private financing and/or a mix of private financing and a commercial loan to make it happen. It will take some leg work to reach out to owners but if i find the right deal it will be worth it. Still working on everything that i would need to get qualified for a commercial loan at this point. I have very good credit but minimal funds to use as a down payment. so i am trying to keep it creative to make it work.

I'm also looking to find a live in multi family that i can buy with FHA/203k. My wife and I have recently moved from Oregon and should have no problem qualifying for the FHA/203k loan.

I have just over two year experience from managing my duplex which i have probably made more mistakes then you could imagine, one of the worst being that i screwed up paperwork for a eviction process which made it so i had to start it all over again. Over all my early experience with the kind of tenants you hear about in the horror stories that cost me a lot of money and time gave me invaluable lessons and it reassured me i am investing in what i like to do in addition to my day job. Getting to my point, i plan to have a lined up management company to present with the paperwork in the process of acquiring a commercial loan because i feel my short time of management could be an issue for lending.

Have any of you made the jump from smaller single family units to a larger multi unit? did you have to be creative to make it happen? if so would you be willing so share how did it?

If you acquired commercial lending to do so, do you have any tips or feed back from your experience?

Are you glad you made the jump? or do you wish that you would of kept going with single unit options?

Lastly for anyone who has smaller multi family that does not have on site management, would do share what management company you have had the best success with or have you created your own management system by finding your own crew?

Thanks again,
Kelly