All Forum Posts by: Zack Eastwood

Hey @Zack Eastwood that is awesome. I am also ramping up to do something like that. I know many investors that would do that if you are able to make it passive for them and get the a 20% COC return. I am not doing it now as I don't feel I have the clout. I only own one rental now, but am buying 2 more this year. If I can show I can run three properties profitable then people are more likely to trust me with an investment. I also got into Robmob for the learning and stamp on my Resume.

Hey @Zack Eastwood, do you have a property in mind? They have a pretty restrictive yet organized rule structure.

Here is the site that covers STR's - https://savannahga.gov/1476/Sh...

In response to other posts here, if you look through some past BP posts you'll see plenty of people are happy to put up 100% cash as a silent 50/50 partner. All depends on the return - if someone is looking for passive income and can get a good ROI with a 50/50 partnership with a partner that will do 100% of the work, then it could be worthwhile.

To answer the question about deeding to an LLC after closing, that's so they can get Conventional financing with 10% down (Fannie/Freddie won't close a mortgage under LLC).

@Zack Eastwood If you set this up and deed the property to a 2-member LLC, then the LLC will receive the proceeds when the home is sold in the future. Your ownership and structure of the LLC will determine who gets what. Should be part of your operating agreement.

@Zack Eastwood, I third the broker suggestion. In my experience, admittedly in syndications buying very large Class B and A- properties, all reporting (NAR, Costar) are higher than what you would have to pay to get a deal. They do mirror cap rate trends over time, but early 2000 construction in good neighborhoods in Orlando sell in the high 2% cap rates now. And three years ago, they were selling in the mid 4s, while costar was saying 6's.

Secondly, you have to realize that with the market rent growth currently available, cap rates are next to meaningless on all assets. Orlando is seeing 20% yr over yr rent growth in most neighborhoods, and buyers are pricing that in. But if you look at T12 or T3 annualized, and offer at a 4.5%, you will very likely be outbid.

I typically use an overlay method, where I research the median value of an area, and then median rent of an area... voila! Do math, get cap rate! Current market research(since Jan 2022 - today) for Orlando (from as north as lake monroe, to lake apopka, then south to the airport and back up, on a map) shows a current median active value at $400k, and a median sold value of $336k... both the active and sold median home is a 3/2 with roughly 1500 sq ft.

Over that same time the median rental value for active listings is $2195 per month, and the leased median is $1925, so if we play it safe here, and use the lower leased value then $1925*12 is $23,100 of annualized gross rent... divide that buy current median sales value of $400k and you have a 5.775% cap rate as of today.

@Zack Eastwood, you already have a leg up over others since you are a single-family home investor. And small multi-family (Duplex, Triplex, quads) are similar to single-family. What's great about these small multi-family properties is that they qualify for residential loan financing.

To gain more confidence, narrow down the zipcodes that interest you and start analyzing properties. MLS sites such as Realtor.com, Zillow, Trulia regularly post multi-family listings. Adjust the search filters to see multi-family units. Loopnet, Crexi are more focused on 3+ units. For multi-family units, I have had the most luck with Crexi. I noticed that once I save properties that match my investing criteria, the listing brokers ping me later. They add me to their newsletter and start sending their new listings regularly.

As author Greg McKeown put it: "If you focus on what you lack, you lose what you have. If you focus on what you have, you gain what you lack." Remember, you are already an investor. Good luck with your journey!

Hey @Zack Eastwood congrats on dipping your toe in the multifamily market. As someone that was intimidated by the thought of even getting started in investing in real estate, with no connections or resources when I first started, I can definitely relate. I've been fortunate enough to go from seeking information, to sharing the information I have learned along the way. The strength of the bigger pockets community revolves around great folks that are willing to take the time to share the information they struggled to learn, so you don't have to. In the same manner, anybody that is worth their weight in the multifamily investing space started with a vision and needed some kind of guidance. Chances are if you encounter someone that isn't patient enough to sit with you, learn about your needs and help you develop a plan as you explore multifamily investing you are talking to the wrong broker. 

To make the best of your time, I would do the following:

1. Take some time to write down your goals, benchmarks and overall vision for transitioning for multifamily. If someone is going to help you, they are going to want to see that you have thought your plan out. Being prepared with notes and clarity is a great way to earn respect.

2. If you are just in the research phase and you are not in the position to purchase that is fine. Just let the broker or associate you are dealing with know, so they can prioritize their time, and don't have any false expectations. Since they would essentially be working for free, being prepared with a clear vision (step 1) will allow them to be more efficient when helping you. 

3. I think BiggerPockets just added a "Find An Agent" tab that may be helpful to you.

I'm a broker and investor here in Orlando that specializes in single family investments, small multifamily projects, and wholesale deals. I'm humbled and inspired every day when people come in and share their vision with our team.

I am not an expert in multifamily, but we have the experience of closing a few thousand single family, quad, and triplex deals along the way.  If no one else is willing to help you, then I'll make sure someone from our team can sit with you, learn about your vision and point you in the right direction, even if it is with a different firm.

Hope this helps!