Over the past year, my partner and I have completely shifted from purchasing single-family rental homes to multifamily apartments. It’s a move I know many others are considering. So, what’s involved? How do you make the change successfully?
There are many reasons residential real estate investors are looking to shift to multifamily today. Competition levels, financing, and finding value are some of them. One of the main reasons we made the switch was due to the economies of scale. It’s easier to manage one 203-unit complex versus 203 individual single-family homes. And it is more profitable.
How do you get started in multifamily property investing?
The first step I took was educating myself. There are different terms and lingo in the commercial real estate sector, such as NOI, cap rate, cost segregation, etc. You want to understand these comparisons and sound educated when talking to others in the business.
I read multiple books, one being Multi-Family Millions by David Lindahl, read through forums on BiggerPockets, and watched hours and hours of material on YouTube (mostly by Grant Cardone). It also helped that my previous mentor was involved heavily in the industry. So I learned from him. There are a lot of misconceptions and myths about stepping up to multifamily investing. Get to know the truth, and it may be a lot easier than you think.
Leap of Faith
There comes a moment in time when you just have to be courageous and make the purchase. There is no way to learn everything related to multi-family investing from education. The same applies to single-family investing. It’s a trap many fall into,…