This may be a little specific, but following up on my earlier post re: owning RE as a side hustle (some great comments there by the way, so thank you RE pros) -- has anyone owned a 6-12 unit multifamily, or may be looking at one? Curious to hear about any and all experiences.
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Honestly, sounds a little vague. Where do you want advice? In the acquisition, financing, management?
Really just looking for people’s experiences. Good/bad stories, what to look out for, etc. I’ve done a fair amount of diligence, spoken with a few friends active in the space, but curious to hear what the WSO rockstars have to say.
I'd say go for it. Most people never take chances because they fret and worry about what could go wrong once they buy it. I'll help you out: Something will go wrong, no matter what. Whether it be a pipe break in the dead of winter, your renters of 6 months decide to break their lease in the winter and you're scrambling to rent a vacant unit in the down season, whatever it may be it's bound to happen. But that's the fun part about owning real estate. The more things that go wrong the better, because you'll learn from them and get better and more experienced.
Couple questions though...are you partnering with anyone? setting up an LLC? owner occupied for the first year? raising equity? LT hold strategy or Value-Add and flip?
6-12 units seems like a good first multifamily property. Unless there’s something I don’t know I think with that amount of units you will have to go for a commercial loan.(20-30% down someone correct me or chime in if you know of different financing options). With that amount of units I’m pretty sure it would make more sense financially to manage it yourself.
General consensus from talking to people and learning is that the more units = the better (less headache). I think the rationale with this thinking is that with more units you can afford to have full time on site staff. I plan on doing my first deal in the next year or so , and want it to be about that size. Either that or a flip. It changes on the daily.
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