All Forum Posts by: Neil Henderson

Hi @Taylor Smith

The Vegas Multifamily market is a little strange. It’s either small Multifamily (4-plexes) in really tough neighborhoods or really large apartment communities, everything from D class to brand new, luxury A class stock. It also, for a city it’s size, has surprisingly little Multifamily units. 

If you feel ready to jump into 80+ units, the Vegas market might be a place to come, be prepared to compete, but if you’re looking at small Multifamily, I would caution you. 

Without knowing more information, I would just point in you in the direction of this article from @Joe Fairless . The answer really is, "It depends". So many factors to consider but this would be a great place to start:

https://joefairless.com/seven-ways-attract-high-quality-residents-apartment-community/

Welcome Jerome,

I would avoid paying much for any training at the start. I'm not opposed to paying for mentoring, but I think many new investors seek it out before they are really ready for it. They'll spend thousands on a mentorship for a strategy that either doesn't work for their current lifestyle, nor will it get them to the lifestyle they are seeking.

Spend a few months listening to podcasts and reading blogs here to get a feel for the different strategies that are out there. If one appeals to you, seek out someone who is succesfully implementing that strategy and find a way to bring some value to them in exchange for learning the ropes. 

Sample from the buffet table of real estate strategies before you commit to eating at one of its five-star restaurants.

Best o

Hi Lucas, I would say you're on the right track. It's really important to begin with the end in mind. Might sound cliche, but I've seen plenty of real estate investors charge off down a path towards an investment strategy, find success doing it, only to discover they don't particularly like the life it's given them. 

Some of the best advice I've heard recently about picking a long term strategy, whether it be real estate or a career, is to intern at it for a period before committing to it for the rest of your life. People often have a romantic view of what they think a career involves that gets quickly shattered once they are IN it, but by then they've committed so much to going down that path that it can be painful to change. 

Same goes for real estate strategies in my opinion.

If you want to pursue an active real estate strategy, find someone who is doing that strategy successully and see if you can add value for them some way by assisting them (most likely for free). Get a feel for what that strategy is all about and whether or not you enjoy it.

If what you're looking for is passive income, why not look to invest passively with some experienced investors who have the time and expertise to execute their strategy effectively, whether it be in a joint venture or a syndication if you are an accredited investor.

Good luck to you no matter what.

@Tom Makinen Careful with Las Vegas. Very difficult to impossible to buy a single family home that will cash flow and all the small Multifamily is in D class neighborhoods.

Rents are increasing here but the only people really making money off the increased rents are the large Multifamily operators.

Some things to consider:

• Will the HOA allow it right now?
• Will the HOA disallow it in the near future? HOA's are notorious for changing the game on you at their whim, whether it be increasing HOA fees or changing owner occupancy rules. If I were to purchase in an HOA, I would try to get on the board as soon as possible to protect my interest.
• Does the municipality allow short term rentals? Google the "city name, + short term rental ordinance" to see if there are any laws pending or on the books.
• Call the city zoning and planning commission and ask about any short term rental ordinances.
• If it's all good on the above, go to AirDNA.co and find out their prediction for what kind of rent the address could demand. 
• A studio apartment presents pretty thin margins for a short term rental if you ask me, but perhaps there is strong demand there. 

Good luck!

@Alexander Felice would be a good one to answer this question.

With a commercial loan, there are two key factors to consider, the Amortization and the Term. Most residential loans have the same amortization schedule and term, 30 years. Commercial loans can very widely, but a typical loan will be something like a 25 year amortization and a 5 year term, meaning the loan payments are spread out as if the loan will be repaid in 25 years but there is a balloon payment at 5 years. The balance of the loan must be repaid or refinanced in 5 years.

To my knowledge, the Bigger Pockets rental analyzers do not include a loan term as they mostly deal in residential properties. I would just input the 30 year amortization and ignore the term for now. That will give you the basic numbers.

However, remember, the loan is going to be due when the term is up so your exit strategy had better factor that in. 

Nicely done. 

I'm assuming the VA requires owner occupancy?

What's been your experience doing short term rentals in Fayetteville? 

I prefer to rely on local market experts for I'm-about-to-spend-money decisions, but Trulia crime maps are a great place to start and a decent way to back up what a market expert is telling you. Local market experts are realtors, property managers, police and fire departments. If one of them says an area is good but Trulia shows a high crime area, I'd want to dig deeper.