Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 11 years ago on . Most recent reply

User Stats

1,980
Posts
948
Votes
Bryan L.
  • Residential Real Estate Agent
  • Cookeville, TN
948
Votes |
1,980
Posts

Tips for Newbies - Multi-Family Properties

Bryan L.
  • Residential Real Estate Agent
  • Cookeville, TN
Posted

I see so many newbies come on here to BP and say that they want to invest in multies because they are "safer" or "lower risk". I suppose that the general thought process goes something like this: "well, when I have a vacancy, I will still have the other units paying to cover my mortgage". WRONG! What happens when you have multiple vacancies at the same time? Oh, so you don't think that it can or will happen? Ten percent vacancy doesn't necessarily mean that you will always have exactly 10% vacant. It means that you will have an average of 10% vacant. So, if you own a quad for example, there could very well be some months when you have 3 (or maybe even all 4) vacant at the same time and you could still have that 10% average. Then, what happens when you have 2 or 3 vacant AND they leave you with big repair bills and unpaid rent and you have to leave the utilities on while you are getting the units back to rent-ready because it's 10 degrees outside and you don't want the pipes to freeze? Actually, I just recently read a post here on BP where a person had a tri-plex and every one of the units had an eviction at the same time, along with the associated repairs. So do NOT fall into this trap that multis are some how naturally lower-risk investments. Ask me how I know.

Most Popular Reply

User Stats

42
Posts
12
Votes
Timothy Trewin
  • Clarksville, TN
12
Votes |
42
Posts
Timothy Trewin
  • Clarksville, TN
Replied

@Bryan L.

Thanks for that advice. I was looking into getting in multi family properties when I got to Tennessee but this makes me take a step back. Not saying I still wont do it, but now I take more time to plan for it instead of wrongly assuming they are safer investments. I do appreciate it.

Loading replies...