Medium multifamily covers properties of roughly five to twenty units, the first tier that crosses from residential into commercial classification.
Log in to followSomething I ran into on a 9-unit in a secondary market that I haven't resolved. The guide logic is that at five units you're valued on NOI and a cap rate. That's how I underwrote…
Turns and light rehab are what my small crew does, mostly for other people's rentals, and one of the brokers I work for sent me a 7-unit as a pocket listing before it goes up. 7 u…
Working a 14-unit at 1.62M asking. My underwriting lands NOI at about 96k after a 5 percent management fee and 300 per unit per year in reserves, so roughly a 5.9 going-in cap. Ba…
Seller has a 10-unit brick walkup, all 1BR, in a town of about 4,000 people an hour from anything. Asking 620k, which he's calling an 8 cap off his own NOI of roughly 49.6k. Books…
11 units, bought with rents at 950 across the board, market supports 1,150 and I've turned 7 of them at that number over the last stretch. Four are still on legacy leases that rol…
Under LOI on a 14-unit garden-style, two buildings, 1968 vintage, in an inner-ring suburb. Price 1.75M. In-place NOI I can defend is 118k, so a 6.7 going-in cap. Rents average 895…
I model income property all day for other people and I've somehow never owned any of it. Now I'm looking at an 8-unit for myself and the utility structure has me stuck. Building i…
I'm finishing my salesperson license and looking at a 12-unit at 1.05M as a first commercial-classified purchase, and my operating expense line is guesswork. Specifics I can't pin…
Bought a 16-unit two-story in a secondary market 18 months ago at 1.45M. Bridge of 1.1M, interest only, SOFR plus 350, 24 month term with one 6 month extension at 50bps and a 1.20…
I came into this planning to buy one rental. What I ended up with is a 5-unit in an older brick building, 412k, and the reason I am posting is the tenant files, because that is wh…
My plan was a duplex. Then my agent sent me a 7-unit at 585k and I've been staring at it for a week. The rent roll the listing agent typed up shows 5,320 a month. Three units have…
The insurance binder came back at 17,400 nine days before closing against the 9,600 I had in the model, and for about 48 hours I thought four months of work was gone. Shape of it.…
I have about 240k I want to put into multifamily and two live options in front of me. I'm on the capital side by temperament, meaning I'd rather read documents than fix toilets, b…
I've read the section on income valuation twice and I think I finally understand why these two buildings are asking the same number. Both are 5 units, same small city, about a mil…
I have been underwriting an 11-unit for three weeks and the whole deal comes down to one decision I keep changing my mind on. In place: eleven units, average 810, comps support 1,…
This is my first building over four units. Everything I own now is duplexes and a triplex and I do all of it myself, which mostly means answering my phone at dinner and knowing wh…
I've spent most of my time on dirt, so this is me stepping sideways into something I only half understand. Seller owns two adjoining buildings on two separate tax parcels. The 9-u…
I've owned land long enough that the holding cost is a tax bill and a mower, so budgeting for a building with roofs and boilers in it is new territory for me. I'm looking at a 12-…
Working up a valuation on an 11-unit I've been asked to list, and the gap between the rent roll and the bank statements is bigger than anything I've seen. Rent roll says 9,100 a m…
I've been reading the supply side for a while, mostly because I wanted to know when land in these submarkets stops competing with new apartment deliveries. The read most people se…