Investing in Multifamily Properties: A Step by Step Guide

[@joshhaney2581]

I have 3 rentals and have multiple friends with many more. No one I know uses the 50% rule. It's way too high. If someone is spending 50% of rent just on maintenance and cap expenses they are either renting way too low or bought a straw house. I find 25-30% is closer on a c+ to b rated property

[@scrotiemcboogerballs2133]

How much income or savings should I have before investing in my first property in today's climate? What is your opinion, I want my first property purchase to be a rental unit. My dream home can wait

[@diegomendoza662]

@@scrotiemcboogerballs2133 I’m not expert, I’ve also just started, but I also hear you “don’t need money to start” because you want to use investors for that 20% down payment. Ken McElroy explains more in detail, check him out about needed money starting off.

[@LoneVocalist]

Thanks for that info. Does that 25-30% include insurance and management company cost?

[@Iam.Tajane]

I love animated videos like this one it helped me to follow the video better ! Thanks for the info

[@francescoluna5246]

L. L Li lol

[@passiveincomeac]

I love my multifamily properties. Great passive income.

[@withny1234]

Making it easy love to see it!

[@jayt4561]

Ty for the video. My question is where do you go to check if a property is zoned for multi-family use?

[@Airgutter87]

County records or ask an agent

[@lewispi3715]

I am new to this and learning. Thank you for this video it helped me understand so much more. Have a great journey

[@graysongetz7270]

So is it safe to assume that part of that 50% allocated to expenses would include an expense for property management?

[@psychologicalfacts9292]

50% is only for CapEx. The remaining 50% should cover your mortgage payment. Even if you are saving $100 per month after 50% and mortgage then you can consider it as a good investment. Else run away...

[@laurasimpson2827]

Great Job I like the way you explained the process

[@jojosantos9920]

What software do you use for this video? ty

[@emawussi]

Very informative. ❤❤❤❤.thank you

[@olympiagrace5974]

Thank you for making this video!

[@LoneVocalist]

Does that 50% include insurance and management company costs? Great video btw. I'm a visual person so I lean better this way.

[@eugeniekerstin8544]

Great stocks and I just bought in on them, but I'm interested in making short term profit, let say turn a $150K to $500k in 6months, I'd appreciate tips on how what stocks to buy to make this much profit.

[@eugeniekerstin8544]

@maria sandra That sounds great and how do i connect with her ?

[@eugeniekerstin8544]

@maria sandra Okay i just found her website and left a message for her. thanks.

[@khoa1191]

Might as well go to the casino. Wealth is built long term. Want quick money and you will get burned my friend

[@Walina1001]

Why would you divide NOI by your mortgage? That is not a cap rate.

[@DjSuperK]

I’m new to this! Can you please educate me on what you are saying?

[@Walina1001]

@@DjSuperK Cap rates come from an INCOME APPROACH TO VALUATION called direct capitalization. The formula is v=i/r The v is value, the i is the NOI and the r is the cap rate that comes from closed analyzed sales of similar properties in similar location. They have nothing to do with mortgages (leveraging). NOI is not guaranteed and that is why it will sell for different amounts. In a 10% cap rate market $1 of possible NOI has sol for $10. In a 5% cap rate market that same possible $1 of NOI has sold for $20. That does not tell you which property is more profitable. It is just a comp. The poster has explained the use of cap rates backwards. You want to determine the NOI that you are looking to buy. Then you need cap rate comps from closed sales. If it is about 8% for similar properties and you calculated $100,000 NOI then V=i/r $1,250,000=$100,000/8%. That is the probable market value based on cap rate comps. Residential properties of less than 5 units are not valued this way since 1. There is no reliable source of cap rate comps and 2. they can be valued by the more accurate valuation method called sales comparison. Does that help?

[@gal416]

This video is about residential multifamily (4 units or less) only, it seems to be simplified for beginners. Cap rate formula is annual NOI ÷ property VALUE (aka market value, sale or purchase price...). The word Mortgage would only apply if 100% financed, otherwise add down payment to = property value.

[@esweee]

Cap rate = NOI*12/Mortgage? why mortgage? shouldn't it be the value of the property?

[@Airgutter87]

Yes.

[@MetalBum]

You’re correc t this video is wrong on several things

[@princessnikedecency7589]

Is it better to purchase from Banks instead of Individuals?

[@MetalBum]

Cap rate was done wrong. It’s NOI/price

[@stanmoney8470]

I didn't think a townhouse was considered multi family house!

[@Rent-O-Meter]

Thank you for sharing our services!

[@michellewade1696]

Yessssss!

[@mathia.1563]

this video was very helpful thanks for all the tips

[@mariag.garciamarykayusamaq973]

Gracias

[@geminigirl1111]

how can i invest in multi family real estate without a down payment.!?

[@ryansal]

FHA

[@corinnagallo4005]

Did you do it?

[@geminigirl1111]

@@corinnagallo4005 Yes i bought my first rental property with FHA but it’s not multi family i bought a single family house! for my next property i’ll get a multi family :)

[@corinnagallo4005]

That’s awesome I’m still deciding and researching. I want to buy a property with multiple family units while living in one til I can Invest in another here in California the Bay Area. With no money down or 5-10 thousand the least. Wish me luck lol and congratulations 🎈

[@geminigirl1111]

Girl you can do it!!! just focus on your goal and you will accomplish it! and with the FHA loan you only need to put down 3.5% :)

[@caenterprisellc6922]

I'm not going to give away all my real estate portfolio strategies, but multifamily is one.😁

[@imperfectdadstuff]

Can I talk to you about why you started and LLC and it's benefits ? Would love to know your experiences, and pro/cons.

[@shareejl1]

🙄

[@brooklynnyc5949]

@@imperfectdadstuff I don’t know to much but I’ve found out that if you put every thing under your LLC and suddenly you ran out of money you’d could file for bankruptcy for your LLC that way your never actually affected and it cuts down on how much you pay for taxes 🙏🏽👍

[@TimJDiesel]

Is a townhome a multifamily invest?

[@scrappychildhood6633]

Yet normally sold individually. There connected together 1 to 3 story in Florida.

[@gwendolynwilliams927]

Good information

[@lyricspencerbooks8467]

This video is a joke. Watch hard core videos like bigger pockets

[@gal416]

Some of those formulas are way off

[@DjSuperK]

What the fuck is NOI

[@kookookachuke]

Net operating income

[@80sghoster]

Lame!!!

[@face2much]

this is literally the worst vid on this subject

[@Cuhbate]

Explain why please

[@briantunnell123]

@@Cuhbate It starts by saying that multifamily means no more than 4 units, then it just gets more stupid from there.

[@aiakaaaoa9084]

@@briantunnell123 do you have any experience in multi family real estate????? Please🙏🙏🙏 tell me🙏🙏🙏 please🙏🙏🙏 🙏🙏🙏

[@gal416]

This video is about residential multifamily only (4 units or less). It doesn't go into commercial multifamily. It's very basic, more for beginners.