What's your story of how you started with multi-family units

[Ian N.]

Hoping to generate a good discussion to learn how people got started with multi-family units, especially in big cities where prices are so high. How did you locate the property and make the deal happen?

[Paul Moore]

@Ian N..  My business partner and I had invested in oil and gas in North Dakota during the last oil boom, in 2010, and could never find housing when we went there.  So we pulled together the funds, bought land, and built a nice multifamily facility in Watford City, ND very quickly.  

It paid off. We were renting fully furnished 300 to 400 square foot units for $3,900 per month, and stayed essentially full.  The oil companies didn't want their employees living in their trucks in sub zero ND weather.  

We sold the asset at the height of the market, and launched into the multifamily world.  After doing a lot of research, which eventually led me to writing a book, I realized how very risky this development play was. I would never do that again, in fact.  I am now focused on mostly stabilized Class B, Value-Add opportunities in large and growing metros.  No more development (especially in boom and bust towns) in my future.