New investor looking for tips

[Gabriel Roman]

Hello investors ! I am looking to start my investing journey and was wondering if anybody can give me some useful tips. Right now I am looking to start investing into multi family properties. Where does one start/ know where to look ? What does one look for when inspecting the units ? How do I analyze deals ?

[James Dainard]

Hey Gabriel,

You'll want to find an agent in your area that has experience working in the multifamily space.

If you're having trouble you can also find a lender to get a preapproval letter for what you can purchase. The lender should have someone they can put you in touch with that they've worked with in the past.

As for what to inspect, you want to get an inspector through whatever property you're going to purchase if it's your first property. Multifamily inspections are a bit more expensive than single-family. Check your water heaters and your electrical pannels as well as any community areas/sinks/toilets. The inspector should give you a detailed report on the property's condition. 

As for deal analysis you're going to want to look at rental rates for your area. Rentometer is a great resource for this. Compare these rents per unit with your cost for the deal, toss in your insurance and maintenance and you're well on your way to underwriting a deal!

Best of luck!