Finding Multi-unit Deals

[Tyler DeVerse]

Hello Everyone, 

Is anyone having luck with finding multi-unit properties on the MLS in San Antonio? My partner and I looking for a duplex to BRRRR and we are starting to look into direct mail on a few duplex communities since the MLS inventory is so low, but dont know how to draft the letter since it isn't to a live in home owner. Currently we are thinking of something along the lines of

"While driving around, my girlfriend and I drove past your duplex located at “123 Mainstreet” and we think it is perfect for our first home. If you are interested in selling now or in the future, please reach out."

Any and all feedback is appreciated!

Thank you

[Joseph Cacciapaglia]

@Tyler DeVerse there are a lot of us that routinely direct mail the small multifamily properties here in town. Direct mail used to be my go to source for deals, but hasn't been great for the last couple of years. I think your text could work, because it's a bit different. Of course, you better show up with your girlfriend when you go to see it. It also would be a weird letter to send to a lot of the duplexes here in town, because most of them are in subdivisions full of identical properties.

At this point I think it's basically gambling unless you're committed to mailing the same addresses 8-10 times minimum over the course of several months. If you do decide to do it, I would suggest combining it with an online presence targeting the same areas. This is somewhat tough if you're using a driving for dollars type list, but can work on the full duplex subdivisions. Most of my direct mail generates online leads, which I then retarget for significantly less money per touch. Of course, this might not be a good fit with the angle that you're using.

I don't mean to discourage you further. I know it's very tough making deals of the MLS today too. Of course, there are still plenty of investors doing it, which is why there is so much competition. I find the basic BRRRR deal to be the most competitive deal type today, which is why a lot of my clients have moved on to other strategies. Short term rentals and ground up construction are the two types that are slightly less cutthroat today, but still tough. You can combine either strategy with a refinance to get a similar outcome to a BRRRR. With the appreciation rate the way it is in San Antonio these last few years, I've even seen some clients buy traditional buy and hold deals and be able to cash out refinance within a year or two when they've bought right. Of course, that can't go on forever.