First MultiFamily Buy Lessons Learned

[Robert Carlson]

Looking for sage advice from experienced multifamily property investors? What is the most important lesson you learned from buying your first multifamily property? 

[Matt Castle]

My #1 - don't buy b/c of FOMO (fear of missing out). I'm working with several investors who are nervous they're going to miss the boat, so part of my job is calm them down and remind them not to overpay, don't exclude important contractual exit strategies (full inspection, lease reviews, rental income verification, etc.). 

Couple others: 

Screen tenants thoroughly. Then screen them again. Full credit, income & criminal checks are paramount. 

Assuming no differential issues, treat everyone the same. Ex) Don't give rent due date extensions for a tenant who waves to you everyday vs never giving one to a tenant to repeatedly flips you off. 

Do semi-annual inspections. Tenants are renters so it's not in their best interests to fix things when they become easily fixable vs costly fixable. 

File late rent & eviction paperwork on first date available. Don't wait! Don't buy into sob stories. Especially true if you own in a tenant friendly state that gives tenants 15 days minimum for this, 30 day wait for a court date, etc. Before you know it, you're out 2-3 months rent for a simple eviction. 

Hope that helps. I've seen more than my share of sob stories and con jobs, so follow the rules and use them to your advantage.