How do I REALLY get started on multifamily

Question

I just got hired into an firm in Cobb county (Atlanta) and am working full-time making a little over 70k a year.

My goals for the year are to invest in a multifamily ( will house hack if it's near my job site) and finally move out my parents house and start my own life (buy ring, wedding, move into own residence)

I'm hoping to save 1.5k to 2k per month and am starting at 0 right now due to me paying a debt ( will make last payment next month).

I at first wanted to house hack but there doesn't seem to be a lot of available multifamilies near my job ( that are safe for future wife) and I have to come up with money for an FHA(3.5%)

I'm a part-time realtor( don't make any money due to full time job. Mainly got the license to help with investing ) so I know a bit about the industry along with some of the info from BP.

How should I go about doing this? Any advice would be appreciated. My plan right now is to save but it kills me seeing a renovated  triplex for 300k and seeing get snatched up after 6 days. Thank you all in advance

Theo Hicks · Answer

Consider a 203k owner-occupied loan. 3.5% down but covers the renovation costs as well. Start with a 4plex to get your foot in the door and expand from there.

Account Closed · Answer

@Bryan Vincent maybe try the outskirts of Cobb like Powder Springs, Mableton, Kennesaw etc..I would definitely house hack FHA 3% down with down payment assistance if you can qualify.

Oleg Shalumov · Answer

@Bryan Vincent in this kind of situations I would say that house-hack is the best option, but you are saying that it is not an option for you. How about investing in 3-4 plex houses not far from your area or living/work?

I know you mentioned that it is not the best area, but there is always a good area within 30min-1hr drive.

Todd Dexheimer · Answer

1. Buy buildings with your own cash

2. Buy buildings with partners that together have the money and track record.

3. Syndicate – this in my mind should be done by sponsors that have experience with small multi-family at a minimum. A syndication is basically gathering a bunch of people together to passively invest in your/your partners deal.

4. Raise money for a Syndication – This is a great beginner’s way for someone that has a network and wants to get involved in the deal.

5. Invest your own money in a syndication. Be sure you find ways to be involved.

6. Be a bird dog and find the deals for other apartment buyers. You can get paid $50k or possibly more for finding the right deal for a buyer.

7. Volunteer or get paid to work with an investor. Be sure you can add true value by asking people you know to help them.

8. Start small.  When I started I was buying 1-4 unit buildings for rentals and I was completing flips.

9. Become a property manager, real estate agent (commercial), appraiser, inspector, mortgage broker, etc.

https://www.biggerpockets.com/blogs/10145/70092-ge...

Richie Choy · Answer

@Bryan Vincent I live in Kennesaw and have been around Cobb County for a bit, it's appreciated a ton in just the past year. I see that the numbers are quite bad as you have SO many large houses that rent for very little e.g. 3000sqft renting at like $1500/mo which is absurd. If you look at the rental listings on zillow it just kinda looks like big money has had a footprint in buying up this inventory and flooding the rental market (takes off tinfoil hat).

I also don't see a lot of MFH inventory - it flies off the market too quickly.

Kelli Huang · Answer

Bryan,

One thing to keep in mind is that you can move again after you fulfill the primary residence requirement of FHA, and most of the time your first home won't be your last home. You might only live in the multi-family for a year and then move into another home, so I would say to focus more on a good investment property rather than what you and your fiance want for your personal needs. I wish I went for a multi-family for my first home.

Frank Boenzi · Answer

I bought a duplex  FHA with 3.5% down when I got started. I live in half and the other half is rented out covering my mortgage taxes and insurance and then some! I have a great investor minded realtor in Georgia I can refer you to if you would like to talk to someone in more depth in person. Thanks.

Todd Dexheimer · Answer

You need to meet operators that are doing syndications. There are plenty on here and on podcasts. Most deals you will need between $25k-$100k to met the minimum. Most of ours are at the $50k minimum.

Make sure that you get to know and trust the sponsor (General Partner). The deal needs to be good, but more importantly the sponsor needs to be good. For more on finding sponsors and syndications click here: https://www.biggerpockets.com/blogs/10145/83067-li...

Matthew Baltzell · Answer

@Bryan Vincent Congrats on the new job, well done:)

Like others have stated there are many different ways you can get started in multi-family.

I would start educating yourself as much as possible about multi-family over the next 6 months. Stack some paper and really think about what role you would like to have.

I know you mentioned 'house hacking' which may work for you.

In the mean time, go to your meetups and network with other individuals who are looking to partner in deals. I'm sure you'll find someone who can either help you or point you in the right direction.

Bjorik Mutize · Answer

Congrats on the job!

While you are saving pick a market, study it heavy, and get a strict criteria. What type of property, what type of rent's are you looking to get, return criteria, etc

From there constantly break down and underwrite similar properties listed so you know whats a good deal or bad deal so you can quickly make an offer when you are ready. Document your findings on a spread. Really get into how they are performing.

Are you looking for more turn key or add-value? What is your strategy?

How do I REALLY get started on multifamily

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