5 Tips to Win in an Expensive Multi Family Market

I found my way into real estate being told a story of its not possible to invest in my market. Thankfully I made a commitment to real estate investing. I was not just interested, I was and still am committed to finding a way to make it work. I came across Bigger Pockets in 2012 but still found a lot of people saying “you can't do it.” I pushed forward relentlessly, got my wife on board and we found a way togther. We dove in, took action and made it happen. Here are 5 Tips to win in an expensive market with buy and hold multi family rentals… All markets are different, All properties are different moving forward find an expert in your area, there is a very good chance someone is already doing this in a similar way

5. Avoid Turn Key

Since becoming a licensed realtor I have been in hundreds of multi family properties since 2015. Of those only a handle full made sense buying without having to alter the property. Turn Key properties have a difficult time cash flowing and the equity will come from your own pocket.

4. Location

Proximity to transportation is huge. Bus stops, train stations, highways, city centers. Public transportation is a huge game changer, not everyone wants to live in a downtown setting. People want convenience.

3. Make Quality Upgrades

Quality attracts quality. The rentals we own have quartz countertops,upgraded kitchens and bath, recessed lights, hardwood flooring, updated appliances, washer and dryer in each unit, separate parking spaces and more. High paying tenants will have high standards and will expect quality products. This does not mean the most expensive product but make sure what you put in is built to last.

2. Maximize space

Utilizing the entire unit is huge. Adding a bath or half bath is a great way to drive up rents. At one rental we own there was a large walk in pantry, we converted it to a half bath. We also converted a sunroom into a bedroom. The property when we purchased it was 2bed 1bath renting for $1600 it is now a 3bed 1.5bath renting for over $2400/month.

1.Find High Paying Tenants and Protect Yourself with a Powerful Lease

After all this there is only one thing that makes sense. Increase the rents and attract high end tenants. With these great tenants you still must have a strong lease that protects you. My lease is over 20 pages and I am constantly adding to it so when things come up the majority of the time the answers are within the lease

In the end we have great tenants and properties that cashflow and appreciate big time! With this strategy it may be a little more money upfront but the returns long term tend to be worth it.