Can anyone get into multi-family (with a few single families under the belt and less than $100k in cash) without having JV/partners? I don 't know if it's worth paying/taking the multi-family course for if I don't have the resources anyway. Unless you get a generous vendor take-back, you won't be able to do one, can you? Should one go big- or small 60 units or 6?
Multi-family Investing Question
- Thread starter donksky
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Officially multi-family starts at 6 units. That is where commercial underwriting rules apply, namely financing based on debt coverage based on property's income as opposed to personal finances or personal income.
So, a 6-plex in a rural area can be had for perhaps $200,000 .. and with say 20% down and an 80% CMHC mortgage you can start as low as $40,000 !
A 6-plex in Edmonton or Red Deer or Lower Mainland or any decent sized city in ON, MB or SK is about $400,000 (high 60's to low 70's/door minimum) .. and therefore 80-100K is required !
If you are handy and have guts you can find a motivated vendor which will give you a large VTB on his old ugly property with much deferred maintenance, and then maybe with 50K cash plus access to supplies and cheap labor (read: your own) it could be done for an 8-10 plex even !
A 20-plex in Edmonton would be about $1.6M to $2.2M .. and with 30% down minimum you'd need about 500-700K to continue there !
I'd certainly encourage you to get the course as it is great content, but like any training it is best applied soon after the theory. What good is it if one takes a course on driving, passes the theory portion but never get out on the road to drive soon thereafter ?
I bought my first 15 suiter in 2000 with 100K cash down (and some of that was my dad's) for $570,000. This property is now listed for sale for $1.6M (not by me, as I sold it for $750,000 in 2002) .. more examples on our website under "track record"
So, a 6-plex in a rural area can be had for perhaps $200,000 .. and with say 20% down and an 80% CMHC mortgage you can start as low as $40,000 !
A 6-plex in Edmonton or Red Deer or Lower Mainland or any decent sized city in ON, MB or SK is about $400,000 (high 60's to low 70's/door minimum) .. and therefore 80-100K is required !
If you are handy and have guts you can find a motivated vendor which will give you a large VTB on his old ugly property with much deferred maintenance, and then maybe with 50K cash plus access to supplies and cheap labor (read: your own) it could be done for an 8-10 plex even !
A 20-plex in Edmonton would be about $1.6M to $2.2M .. and with 30% down minimum you'd need about 500-700K to continue there !
I'd certainly encourage you to get the course as it is great content, but like any training it is best applied soon after the theory. What good is it if one takes a course on driving, passes the theory portion but never get out on the road to drive soon thereafter ?
I bought my first 15 suiter in 2000 with 100K cash down (and some of that was my dad's) for $570,000. This property is now listed for sale for $1.6M (not by me, as I sold it for $750,000 in 2002) .. more examples on our website under "track record"
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Donna,
I am in the same boat as you... I am also trying to move into the MF after having a few properties under my belt. However, MF requires bigger pockets and you need to be better informed. While I can not pursue a MF right now, I do feel that I got a lot of useful information from the MF course. It was a great eye-opener for me as MF is a different beast than singles. Plus I do like to learn from others people mistakes so I like to read a lot of books and research about it. I can not afford to make a mistake in MF and be out for 3-4 years of opportunities.
While I am preparing for MF (hope to buy for later this year), I am still working in building my portfolio which at the end it will help me with JV partners, brokers and banks as a track record. They look at each partner net-worth vs just cash. I will start with a smaller MF 6-15 units to test the waters.
I am in the same boat as you... I am also trying to move into the MF after having a few properties under my belt. However, MF requires bigger pockets and you need to be better informed. While I can not pursue a MF right now, I do feel that I got a lot of useful information from the MF course. It was a great eye-opener for me as MF is a different beast than singles. Plus I do like to learn from others people mistakes so I like to read a lot of books and research about it. I can not afford to make a mistake in MF and be out for 3-4 years of opportunities.
While I am preparing for MF (hope to buy for later this year), I am still working in building my portfolio which at the end it will help me with JV partners, brokers and banks as a track record. They look at each partner net-worth vs just cash. I will start with a smaller MF 6-15 units to test the waters.
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- Oct 10, 2007
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I would recommend taking the course
If you are a current real estate investor, might purchase multi-units in the future, but might not be able to pull the trigger for awhile if you are willing to put the time and effort into you will benefit from the knowledge
If you are a current real estate investor, might purchase multi-units in the future, but might not be able to pull the trigger for awhile if you are willing to put the time and effort into you will benefit from the knowledge
R
RussellWestcott
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For you that may be interested, the course that people are talking about on this thread you can read all the details about it by >> clicking here