All Forum Posts by: Robert Rixer

@Sean Wagner Agreed on the subsidized renters for sure

Based on the numbers alone, it seems like an incredible deal - even at $560k. So I would be suspiciously looking out for "what's the catch?"

I want to get the BP community's take: Where do you see multifamily being in 20-30 years time?

Many of us on this sub-section have either gone into or fallen into multifamily investing exclusively so I believe it's worth asking the question of what the future could potentially hold long term. Could there be an existential threat in multifamily like Office had with Covid or Retail had with the rise e-commerce?

Average cap rates across the country have halved in the past 25 years. Will this trend continue, plateau or reverse course?

Will the ratio of apartment renters to the total population go up or down in the future?

Thanks in advance!

Approaching a lending broker may be appropriate in this case. It could also be worth looking into short term bridge debt. Make improvements, get the property stabilized and then refi into agency debt. They typically can do higher LTV's and are more lenient with variable conditions as long as the deal is solid.

It all comes down to the risk reward profile. Personally, given the above information, my vote would be for purchasing existing. Far less risk than developing and you'll get cash flow immediately. You can always choose to develop the land later down the line when the economics are more ideal.

The 2 ways I've seen people get higher leverage than 80% is either making it a primary residence or lumping renovations into the loan amount.

It's been known for the past year, just a lot of people leave things to the last minute and end up having to scramble. It's not a huge deal, but yes one more thing to get done.

Lower risk and much greater opportunity to scale while keeping within a relatively small geographic area.

I encourage you to learn as much as you can from these forums and other material before diving into a coach. I'm sure there are a number of people who would gladly take your money but you could find a lot of good answers to your questions for free. And then perhaps consider hiring a coach once you have specific challenges you're unsure how to overcome.

Appraisals aren't an exact science. Appraiser will use data from whatever closely matches the subject. I've had appraisers use adjacent town comps. It's likely they may even use data of SFH with similar lot and building square footage.