All Forum Posts by: Robert Rixer

A larger multifamily build would generally be more cost efficient as you have less exterior footage and can combine MEP systems. Being able to phase the duplexes is a nice advantage however. I would say take a deeper dive into the nearby product and see if there is a premium in rents for a duplex unit versus an apartment.

What could a bank statement from November 2021 show that would materially alter the deal? This is where it's important to think critically. Too many new investors blindly copy due diligence checklists from the internet, assign equal importance to each item and blow up deals over nothing.

The market will naturally balance itself. "Good" areas will be priced high, "Bad" areas will be priced low. I think what you're really asking is how to identify good value areas where rents may be trending upward but the prices still remain relatively lower.

An important metric is tenant household income to rent ratio. Even if rents are trending up, if your tenant base can't make ends meet, the asset won't perform.

Not a B&B investor but the rule of thumb is make sure it works as a regular rental first, then everything beyond that is gravy.

Thanks for the post. This is the kind of insight that makes this forum so valuable.

There is always a way. You could buy a 100 unit with $0 down and find a lender to finance it. Of course the bolder the target, the less likely it is and probably less than .01% of people could pull this off.

More realistic advice is to get as high of paying W-2 job as you can, save up, put 5% down on a 2-4 unit, manage the heck out of it, and then leverage that experience to do a larger deal using OPM.

You need to consider the following couple of points:

1. If someone has the balance sheet, experience and capital - why would they need/trust a relatively inexperienced investor to handle the deal from A-Z versus just doing it themselves?

2. Co-GP is more than just "I need XYZ from anyone". You would be a partner to this person which requires a lot more careful consideration. An ill-conceived partnership can be fraught with danger.

@Ash Hegde @Ray Hage Thanks for the recs. I will definitely check them out

Great mindset, inspiring stuff

@John Salcedo Over 400 units in the midwest, but nothing in FL. I recently moved to South Florida and I'm looking to meet some knowledgeable real estate people.