Purchase price: $68,000 Cash invested: $70,000 Sale price: $195,000 I purchased a long-term rental property from the MLS that had multiple contractor issues and significant delays.

I would like to purchase a 4 unit building in NKY in 2025.

The best I've seen for STRs is 80LTV on purchase and 75LTV on cash outs. 

My first multifamily purchase was my 34th acquisition and my first multifamily syndication was my 103rd acquisition (and wasn't my second multifamily purchase, either).

@Frankie Lotrec if you have an existing loan on the property and you plan to legally convert from a 4 unit to 5 unit , you should check the loan documents because you’d essentially be converting it to a commercial property, since 5+ units is considered commercial and subject to different appraisal approaches and so it would rule out the property being considered for purchasers utilizing residential financing.  

Quote from @William Dorrough: I currently either purchase and value add large scale multifamily properties or develop, and build ground up my issue with scaling is we have done this without brining in investors i have a great deal flow with a good track record im really looking to do more i have the capacity but have the need for more capital in one way or another  Scaling without investors can be tough, especially in multifamily.

The best way to learn the multifamily market is to purchase a multifamily property.

(Which you could also then do with your new purchase in 2 years.

I had a flipper come to me asking about doing a new development.He would need $240,000 to purchase the land from a wholesaler and then he would have his GC partner get the construction loan but they cant get the loan if their is someone else that has a lien on the property so i would have to collateralize against one of their assets which they don't have.

My question is do I go forward with purchasing the property and deal with the higher insurance and potential hazard or is it smarter to walk away?