I understand it can be harder to gain experience with larger multifamily properties compared to single-family homes or duplexes, where someone might complete 5 deals in 1-2 years.

Renting  rooms is almost always more profitable than renting entire suites or houses.

Our plan is to purchase again with a better mindset of turning that into a profitable rental.We have diligently completed all the necessary steps and are on the verge of signing a management agreement with a property manager.However, we are experiencing some doubts.  1.

Over the last few years, I take all of my STR profits and dump them into the stock market and I couldn’t be happier.

For example if you think the house is worth 200K fixed up you need to pay 100K to afford the hard money loan and rehab budget and still have a profit.

Then you 2 would agree on how you would split the profits once the property is generating cash flow and the original equity is returned.

You can find online which larger institutions are buying in a specific area and try and reach out to them.

@Mickey Petersen I would 1031 exchange into a larger better cash flowing property or whatever gives you a leg up on your wealth building.

I think you run a real risk of your second rental eating up the profits you're enjoying on the first one.

Here are some general guidelines: Lien Position1st Position LienEquityMinimum Down Payment of 20-25% (a 30% equity to sale price is preferred)Down Payment made in certified funds and not borrowedMaximum Funding of 70% ITV (Investment to Value)SeasoningMinimum of two monthly payments already made12 months or more preferredPayer CreditCredit Score of 650 or higherNo major derogatory trade lines (No 90-180+ days delinquent, foreclosure, repossession, bankruptcy, etc.)No decline in credit since purchase of businessTermsPrefer 60 months or lessMaximum of 72 monthsNo Balloon Payment preferredCash FlowBusiness has positive cash flow1.25 debt service coverage ratio preferred.DocumentationPersonal guarantee from a creditworthy individualStandard documents including Note, Security Agreement, and UCC-1 filing.Tax Returns on the business that substantiate profit and loss statements.OtherPayment history current and verifiablePayer Interview indicating buyer is satisfied with business and comfortable making paymentsMotivation for selling the note is not a result of a deteriorating businessConsideration of high risk businesses or geographic areasIn these situations, sometimes a partial is a better option.