Multifamily purchase in Sacramento, Ca (Commercial Property)

[Michael Williams]

My wife and I currently own a duplex in the Sacramento, Ca area, we manage the property ourselves, it gives us a positive cash flow of $500 a month after all expenses are paid. We're interested in purchasing an apartment building (5-28) units. Should we contact multi family (commercial) lenders in are area first or find the property before getting in touch with lenders. We would like to manage the multi family apartment ourselves, or should we consider hiring a property management company? Sacramento is a great area to invest in with good returns for buy and hold investors. 

[Will Fraser]

Hi @Michael Williams, I would recommend getting in touch with a lender first, while having a general idea in your mind of what the 5-28 unit apartment would look like.  I have found the lending side to be the most variable and informative for me as to what I can and will pursue.

So, if you know that you'd ideally purchase a 12 unit 2-story apartment built in the 1960s that currently has a flat roof and central heat and air (if that's relevant in Sacramento), then running through the numbers on an asset like that would be a very useful thing with a competent lender.  They'll be able to tell you what the institutions will be looking for her and you'll have a better feel for how to take down a building like that.

Best of luck, Michael!