From SFH REI to MF REI (and potential partner sourcing)

[Brandon Beaudoin]

Good evening BP fam!

First post here but I've been plowing through the forum and articles. Long story short I'm (mostly) getting out of the SFH REI marketplace (I have 3 SFH rentals) and looking to branch into multi-family commercial properties. Shout out to Grant Cardone and his BP podcasts (yes, I've been flipped) for the extra motivation I needed.

I wanted to lay out my position below, seek some thoughts and feedback on options/approach and also test the water for any interest in partnering my first MF deal.

1. Selling 2 of my SFH rentals that are in great seller markets with anticipated closings no later than Sep or Oct at the very latest. Combined sales price will be in the $810k-860k range (depends if I do remodel on of the homes).

2. Sales will be 1031 exchanges. Looking at a local QI in San Diego, CA (Exiter 1031 a good possibility) but haven't yet talked to any

3. I should net ~$75k -$90k from the SFHs depending on final sales price and closing costs. That's about half the down payment I'd need for a 20% commercial loan on a like-kind property. I have ~800 credit scores and pretty substantial primary income (i.e. not self employed, have solid income history and a decent DTI).

4. Looking at 8-12 cap properties with no less than 8 doors in AZ, TX, FL, possibly OH and a couple others. Looking at properties in the $750-950k range (no mobile homes). NOIs north of $60k.

5. Willing to consider partnering with another investor but am also considering using a HELOC on my current primary residence to come up with remaining down payment.

Thoughts? Advice? Additional questions? Interest?

Thanks much and looking forward to hearing from the crowd!

B