All Forum Posts by: Simon Powe

@Simon Powe

Multifamily will generally have higher turnover than single family and it can also be a bit higher maintenance since the tenants seem to take less care of the units. This is based on my own experience, but I think it's similar for most MF owners. 

You'll also want to pick your unit size based on the part of town you invest in. 

If the area is known for a good school district you won't want 1 bed places. If it's known as a more entertainment area your large units will usually be roommates so it's sometimes best to shoot for 1/2 bed units. 

That's something not a lot of ppl think about. 

Also, you'll want to look at value add opportunities with utility optimization, either a reno project to pass utilities on to tenants or some kind of billing system. If you want to be buying right now and can't self source leads though you're probably going to need to adjust your acceptable numbers and focus on the long term. Expecting big cash flow in multifamily apartments right now is kind of a fool's errand because if you find it it's probably in an area that won't be kind for out of state ppl with a third party property manager. 

find a strategy that is repeatable and duplicatable and gets your money back. Build to rent development is a great strategy. Cleveland is cash flow, we do build to rent in columbus urban infill where prices are the highest and land prices make sense. rents are good and on a DSCR can pull out cash and do again. easy scalable strategy and sell the portfolio eventually 1031 into something greater. I'd sell every Cleveland house and put your money in a better market. just my 2 cents as someone from ohio and who lived in columbus for 12 years

 You'll want to source these deals off market from brokers and wholesalers.

Hey Simon! I’d suggest reaching out to some local agents in the area. They may have some off-market opportunities that could work well for you. Also, connecting with fellow Cleveland investors could get you some great deals, especially if anyone has 10-15 unit properties they’re looking to offload. I’m really excited to see you back at it, best of luck!

The inventory on small apartment buildings like that is incredibly small. Not just what's for sale, but what has physically been built here in the area. There is a decent amount of 6 unit buildings that you'll see in the area, however not many come up for sale very often. I bought a ton of them about 10 or so years ago. When buildings like this do come up, it's usually placed on the MLS, but you're gonna need to keep an eye on the market for long stretches of time. These ain't like buying a duplex where there is 100 of them on Zillow at any given point and time.

@Simon Powe

You should consider joining the Cleveland real estate investors club for partners and leads.

They have a section on their website with multifamily deals for sale.

https://www.greaterclevelandreia.com/PropertyList.aspx?search=searchmfall