Lesson 17: Multifamily Residential
October 26, 2021
Review:
- Location, Location, Location
Presentation:
- Types of multi-family
- Duplex, Triplex, Fourplex
- 5-units and more require “commercial” financing
- Advantages of multi-family
- vs office, retail or other commercial
- vs single-family
- Search for Multifamily
- Story of the Cree Terrace Apartments
- Before:
- After: Current Street View
- 8-unit apartment building
- Low-end rentals
- Dealing with evictions
- Adventures in bats, cockroaches, pets, guests and carpeting
- Importance of “Santos and Bob”
- Headache to revenue factor
- Financials
- Purchase Price: $182k
- Beginning Monthly Rent: $495/month + electricity
- Ending Monthly Rent: $650/month, all utilities included
- Selling Price: $256k
- Lessons:
- 1 bedroom apartment better than 2+ bedroom
- Rent drives value and utilities are a hassle (including utilities was a good move)
- Go big (10+ units) or stick w single-family
- Beware of the “nickel and dime” buyer while under contract
Assignment:
- Use the MLS or LoopNet to identify one or more multifamily properties
- Record the property address, the number of apartment units and the asking price
