All Forum Posts by: Dalton Foote

I have partnered with individuals on fix and flips but my goal for 2025 is to buy my first LTR. I have a lot to learn on this side until then but am looking at buying a value add multifamily rather than residential. Any suggestions on finding that first deal? I plan on driving alot to find distressed or run down multifamily properties that possibly are owned by an out of state investor and reaching out however would like everyone's opinion or personal experience on some other creative ways. I own a licensed gc company so if it is in a decent area I know I can add alot of value to it at a cheaper price since there won't be any labor or material markups. Any lenders, agents, or connections would be great too! Looking at fall/winter 2025 at the moment as I will have a decent chunk of liquidity if needed to throw at it by then. Thanks!

@Jonathan Greene great advice! 

@Tim Delaney great points. The explanation of why you love 4 plexes makes complete sense! 

Hey Connor congrats on the purchase! There's nothing like getting your feet wet and just diving into it and learning along the way, as long as you don't lose an arm and a leg in the process ;) you will grow so much with this experience and learn to do more due diligence in the future. I've been there. I noticed with the price range I was wondering if you could cut some costs with not going with a "high end" renovation you mentioned. Seems like it's not going to be in the greatest area with the arv and rental prices you are throwing out. If it's a rental just get it rent ready. No need to spend a crazy amount on super nice finishes in neighborhoods like this unless you are trying to flip it/sell.  Maybe talk to your GC and see what finishes you are getting exactly and try to reduce some cost there? Or if there are portions of the scope thats not necessary per say? With a house on the lower end like that every few thousand adds up and takes away from your returns on the rental income. In my experience some contractors do not have the investor type of mindset. On renovations that are going to be rentals there's always alot of things that COULD be done and would make it look alot nicer but it's not NECESSARY if its just going to be a rental. The return on investment just doesn't make sense sometimes in the short term. Keep your costs small right now and after some time you can cash out refi and get your margins up a little monthly to give you some breathing room or put more money into it later down the road to make it "higher end" and stand out to flip for a profit. :) I'd have your pm company go out and tell you what's NEEDED for them to make it rent ready. 

@Jayson Schuetz This is a flip that my guys completed. I'm a small GC in the area. We do many flips for investors and also have our own that we do sometimes. 

@Zachary Harrison sent a pm 

@Shafi Noss absolutely! Great points and insight here! 

Is anyone doing this currently? I am more focused on building to sell than rent with this strategy at least starting out. I own a GC company and have guys with plenty of ground up/new construction experience so I'd save labor and material costs. Just trying to feel out the market. Would love to connect with anyone with experience to see the challenges and process. If anyone has any tips to avoid issues/conflicts please share! As far as sourcing the lot, dealing with zoning or the city on new construction permits, engineering plans, etc. 

@Derek Worsley Welcome Derek. Let me know if you ever want to have a chat or ever need anything. I'm a local investor/GC also interested in branching into multifamily. 

I just read in more detail the replies... I think we can all agree this is for single family home remodels.. commercial and multifamily is a whole different industry/ballgame when it comes to funding, draws, payments, etc. You can not compare them to one another or expect the terms to be the same.. Just to be clear for new investors..