You have $250K, but not net worth... commercial or 2-4 MF?

[Account Closed]

I would prefer to start out with 5 +plus unit's, but my net worth is basically just that $250K...any suggestions? ...or will I need to begin in the 2 to 4 sector? If commercial, I plan on to include a notable management company into my expenses. Thanks!!

[Michael Ealy]

Originally posted by @Account Closed:

I would prefer to start out with 5 +plus unit's, but my net worth is basically just that $250K...any suggestions? ...or will I need to begin in the 2 to 4 sector? If commercial, I plan on to include a notable management company into my expenses. Thanks!!

Frank,

I had negative net worth but now have acquired over 1,000 apartment units.

If I were you, start small but still use leverage (I am assuming you have good credit and have a job) so you don't spend all your money on one deal.

Buy a 2-4 unit that needs a little bit of work (cosmetics - paint, carpet, new windows, new landscaping) that you can buy at 10-20% below market. Put down 30%. Hire a PM and learn as much as you can turning the property around. Then once you know what you're doing, then scale up from there.

Makes sense?