Multi family real estate investing

BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Multi family real estate investing

Bryce DeHaan
Member since 2020 · 40 posts · 5 votes

Hey BP, thanks for taking the time to read my post! I'd like to first just lay a foundation for my question. I am a 22 year old married veteran with 2 kids and one on the way, currently living in Arizona, and I own a house cleaning business. I have extremely high goals in REI and plan to one day own 5-10,000 rental units. With that being said, I completely understand that we are still at the beginning of our journey and we have some stepping stones. I originally planned to find private equity to fund a 4-20 unit building and utilize the BRRRR strategy. I either haven't had much luck or haven't tried hard enough but we haven't found anybody willing to invest with us even though I have extensive real estate knowledge as well as capital myself to have some skin in the deal. We are saving to have the money if we need to do a VA or FHA and house hack for a while but are still open to private equity and giving an amazing deal to whoever invests with us. My question is, what should I be doing in the meantime to set myself up for massive success aside from just learning the numbers and my market? We will be going to the outer Tampa area so what should I be doing to stay proactive while I stack my bills for the next 6-8 months?

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  • Grant SchroederPro Member
    Lender · OR ID AZ CA WA CO NV TN MT · Member since 2018 · 598 posts · 312 votes
    5y

    Hi @Bryce DeHaan, Thanks for posting, and thank you for your service to our country! Your best plan of attack right now would be either to 1) House hack a 2-4 unit with your VA or FHA loan to build momentum or 2) Purchase a 1-4 unit investment property with 10% down on a portfolio loan there in Arizona. Do you currently own your home? You are definitely on the right path! Let me know if you have further questions. Glad to answer them as you are getting underway on your REI journey.

    [email protected]541-231-1256
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  • Bryce DeHaan
    OP
    Member since 2020 · 40 posts · 5 votes
    5y

    @Grant Schroeder

    Hi Grant, thank you so much for the response. I am currently renting but owned a home in GA while I was active duty through a VA loan. I was not entering that purchase with an investors mindset so we sold it clean and clear and made a little bit of money on the equity. We moved to Arizona and started a business so we couldn't qualify for a home loan until two year tax returns. We will have more than enough to cover a 4-plex as well as everything else included while managing it ourselves and adding value but we were thinking private money to get into a larger deal faster. Essentially to prove my net worth to other potential partners/investors in the future. Honestly anyone I can talk about real estate with or learn from is a great contact in my opinion. If you'd like I can send you a message and we can chat on a zoom or something in the future?

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  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    5y

    @Bryce DeHaan thanks for posting.  A couple of things here:

    The BRRRR method itself is designed for 1-4 unit properties. This is "residential" real estate. The BRRRR method works in this environment because the turn times on things works well - turn time on rehab, turn times on financing, etc.

    The BRRRR method is not really designed for 5+ unit properties. This is considered "commercial" real estate. The BRRRR method is not designed on this side because everything is different on the commercial side. Accounting is different. Lending is different. A "flip" on an apartment complex is usually 4 years. A flip on the residential side is usually about 4 months. It's that different.

    As you mentioned you will need 2 years of tax returns to try to qualify for a VA loan. I do like using VA loans since we don't need any down payment on that loan. However, you can do 1-4 unit investing right now. Without 2 years of tax returns. You can use the BRRRR technique or just flip. So I might encourage you to explore that avenue.

    As far as networking goes, Bigger Pockets has some great state forums and usually there are good locals that monitor those. Try posting in that state forum. Also, try some local real estate meetup groups. Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Even facebook might have some good local groups for you. But post locally to network locally. That’s the best bet.

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  • Michael Haynes
    Investor · Tampa, FL · Member since 2016 · 679 posts · 288 votes
    5y

    Hello Bryce DeHaan, I'm in Tampa selling my last house after 30 years of Landlording my small portfolio of rental duplexes and houses in S. Tampa. You are looking for guidance from BP members. I suggest that you go to Del Walmsley's site www.lifestylesunlimited.com and watch all of his youtube videos to formulate a Business Plan that fits you. You say you are moving to the Tampa area to start your journey. You can start right now by learning how to do property Searches on Zillow every day. Get familiar with every County around your next Home. Start with $100,000 to $200,000 and up to a Million in value. All the Houses, Duplexes, Townhomes, Condos, Manufactured, Trailers and especially what the Land values are. Unless it's Commercial, the easy way to get a basic value is the Land plus Cost of Construction per sq. footage and something for the Location, Location, Location. The thing they always left out with Location, Location is "does it have a View?" Or are you just living in a fixer-upper, next to struggling familes with a junk truck across the street and lawns that look like crap? You have eyes to get really big, so, you should also search for all the "5 and 10 Year Plans to a Million" on Google and youtube. And remember, "The bigger they are, the harder they fall." 

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