1st Multifamily Property in Atlanta?

Question

Hello. I'm Louis. I'm looking to purchase a 2 to 4 multi-unit property here in Atlanta soon. I'm looking for a great area to invest in as a first time home buyer. I'm not sure if I want to pursue a FHA 203k loan or some other kind of mortgage loan. I don't want my first time experience to be so  overwhelming that I become paralyzed. I'm Looking for some great advice to move forward and make this first experience as smooth as possible.

Ola Dantis · Answer

@Louis Vaughn Hey Louis,

What we used to buy our first MF building was a traditional FHA 30-year amortized loan, as the 3.5% would certainly help you as this is your first time.

I'd advise you to stay away from an asset that is extremely distressed and in need of a ton of repairs.

A quick tip for you (free of charge, lol): Look for a building where all the rents come to, say, $2k/month and your mortgage is $1.2k. When you see this, you may have found yourself a decent deal, then you can do some serious deep dive.

Hope this helps, Louis. Goodluck. Thanks! - Ola

Louis Vaughn · Answer

Much appreciated @Ola Dantis! I've been highly thinking of purchasing with a FHA 203K loan, but doing like you said and stay away from properties that I know would be a headache. Thanks for the wisdom.

Louis Vaughn · Answer

Thanks you soon much @Curtis Rouse for reaching out! I'm gonna give you a call tomorrow!

Curtis Rouse Jr · Answer

@Louis Vaughn I'm in the MF space and own a couple apartments myself. I help investors all the time analyze anything from smaller SFR's to the larger MFR's complexes through my financial model I built so please let me know if I can be of assistance if you come across one you like. The BP calculators are a great tool as well and what I used to initially get started. I have posted some examples if you look at my past forum post. Best of Luck!

Louis Vaughn · Answer

Thanks @HadarOrkibi. I appreciate the response!

Hadar Orkibi · Answer

@Louis Vaughn if you can house hack the property that would be great strategy.

bight the bullet and deal with FHA if that's what you need to do.

The other option would be talking to local bank or mortgage broker applying conventional loan.

Louis Vaughn · Answer

@Brandon Reed thanks man. I appreciate it. How would I go about finding a for sale by owner?

Brandon Reed · Answer

Hey @Louis Vaughn! Do your best to find a Seller Financed deal. The terms can be much more flexible than if you're dealing with a bank (especially one backed by the government) for things like an FHA or 203k loan. Both of those loans are great options, for sure! But if you can find someone willing to carry financing for you, thus allowing you to skip dealing with the banks altogether, that's even better!

1st Multifamily Property in Atlanta?

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