All Forum Posts by: Anthony Zotto

@Anthony Zotto While I can't speak from experience (PS congrats! You've clearly put in a lot of hard work and had a lot of success with your investing), my advice would be to utilize your experience and resume of success to look for a partner for a bigger property. Commercial benefits a lot from scale, and if you have experience with the acquisition, effective mgmt of less units, marketing, etc, when the property is big enough to support a PM company, you can really start to achieve some economies of scale in cash flow, and saved time. 

With only a few properties above 5+ units available, the competition and acquisition phase will be a lot more difficult than if you can increase your search parameters to say 50 units with a partner. The amount of time you invest may be more overall, but you can now charge say, an acquisition fee, an asset management fee, and again you get better economies of scale with more units.

Good luck! I hope all goes well with your transition.

I've done the same thing here in Western NC - Asheville area. Biggest difference is the lending, otherwise it's very similar. This size is still smaller than what large syndicators are going after so we still deal with the same type of owners, typically local landlords who self-manage. Find a good local bank who likes multifamily. Know you'll probably have 5-10y fixed with 20-25y amortizations and won't be doing 30y fixed loans most likely. The lending will be primarily driven by your DSCR, experience and your current assets. In my opinion they are way easier than conventional underwriting if you have a solid track record which it sounds like you do. You will need to look at things from a cap rate perspective for the valuations which in my experience makes it easier to BRRRR than with 2-4 units if you do value add.