New to Bigger Pockets

[Kent Chrisman]

Hello BP! I'm new to the REI game and am more than fired up to get going. Though I consider myself to be in the learning phase, I hope to have a contract on a 8-12 unit multifamily property by 3/1/18. I have access to about 100k by doing a refi on my house and am currently looking for and evaluating partners in hopes of creating a multifamily investment corporation and this first deal would serve as a learning tool. I've completely inspired by the stories of @Michael Swan and @Joe Fairless and what they've accomplished is exactly what I want to do.

I'm currently reading a REI book a week and listening to two BP podcasts a day in hopes of accelerating my learning. If I'm remembering this correctly, I've heard on the two of the latest podcasts from @Austin Fruechting and @Brentin Hess that they listened to every single podcast on BP and so I've decided to do the same.  

@Brandon Turner, maybe you could start the #BPChallenge?  I'm starting at the  very beginning, Ep. 001, although I've listened to the latest 15 or so podcasts.  That being said, I'm 6 days in and on Ep. 14.

I do have a few questions that I'm hoping the BP community can guide me on and if they don't get much traction here, I'll likely break them out into a separate topic:

• Does the 2% rule apply to multi family?
• In multifamily deals, is having different partners on a deal by deal basis more advantageous than having the same partners and operate under a corporation?
• Would the best means of getting into multifamily properties be through a refi on my house to get 100k-150k or a 1031? 

Thank you BP!  I hope I can provide as much value to the community as it has already provided to me.

[David Michael]

Hello Kent Chrisman !!!!

Welcome to BP !!!
Yes the 2% can be applied to multi family but use it as guidelines/filter. Every market has its own valuation.

It's advantageous to operate under different corporation. I have seen the best of families fall victim to greed. It is not personal when you don't mix business with pleasure.

A strategic means of getting into an investment is to evaluation which option works better. If the cash flow from your Refi will produce more cash flow and not strain your primary residence (assuming the refi is from there ) then the refi works.
If you have an option for a 1031 your better off using this method in order to be less strained in your primary residence