All Forum Posts by: Percy N.

Make your offer based on your best underwriting, not what the seller or broker wants - they benefit from a higher purchase price, not the operations of the property.

@Gabriel Craft, I would start by learning more about the asset class.

If you wish to scale via multi-family, I suggest investing as an LP in some deals (syndications or funds) first.

Many of our investors are high-paid W2 employees to focus on their jobs while passively increasing their net worth.

People often underestimate the time and effort to switch to the sponsor side, so make sure you fully understand what is involved before leaving your current profession.

@Michael B. it is unlikely you will find a good property "half off" in this market.

Cap rates will increase in a bit but not significant enough to get you 50% off unless it is a foreclosure (even then it is unlikely).

A little more context as to the number of units and type of coverage (P&C, Liability, etc) would help provide better answers.

@Nadine O. what type of investing are you interested in (e.g. market for STR may be different than flipping SFR, which may be different than MF)?

We have had good success with MultiFamily in the Huntsville market.

US News recently named it the best place to live for 2022-23.

https://realestate.usnews.com/...

Many people start out using the Michael Blank templates and then move to move sophisticated models.

@Ryan A Shumaker, a lot will also depend on the nature of the project and market.

Is it a value-add, core plus, core, etc.

Often people confuse the preferred return for cash distributions during the hold period (which may or may not be the case) and I always try to clarify that for the newer investors to set the proper expectations.

There are many packages to streamline the investor management process.

A few of them have been mentioned about but will also add Realpage's IMS to the mix.

As @Badri Malynur said, Avestor seems to have some interested features and I recommend looking at that as well.

A 2 unit would not be considered a commercial loan (5 units and above).

Your equity will be dependent on an appraisal (zillow zestimate may or may not be close). Based on that, you could do a cash out refinance.

However, if this is an investment property, most lenders will only lend to 75-80% LTV, so not sure if it is worth it if your numbers are accurate.

You could look for a HELOC. Some smaller banks or credit unions will offer it on investment properties.

@Devyn Grillo, you can't 1031 your primary residence, only investment properties.

$250/mo cash flow on $150K equity = 2% APR (not good)

Find a way to boost your net income from this property or refi to take some equity out and reinvest that equity.

Personally, I find it is tough to make the numbers work on small Multi-unit complexes (depends on the market).

Make sure you have a good plan to manage the property and have maintenance and leasing figured out.