Most investors begin investing in single family residences, gaining confidence over time, it is now-a-days easy to find investors and silent partners and to build the business up slowly to own larger multifamily units.
Networking with the right people is very important, particularly with other groups including realtors, investors, and larger multi-family brokers, such as Tarek el Moussa.
Determining profit margins is critical, as with any investment. As investment pool grows, it becomes easier to get into larger units. And given how active the multi-family unit is, and with the large pool of renters, the investment makes sense.
Additionally, ‘value-add’ units, where there is room to improve condition, is a particularly good investment.
Remember why people invest: to increase capital and revenue! Look for where it is possible to increase rent & increase occupancy, based on increasing the value of the property. You can then leverage the asset of others, while enjoying having ownership of the property.
After all, it makes sense to have 18 units and renters under the same roof, than 18 different properties to manage!
- Develop track record.
- Network with people that are investing in the same type of properties. Reach out to Tarek.
- Talk to an attorney about how to setup an equity partnership.
- Always add value add, don’t pay top dollar for top product.