How to Get Started in Small Multi Family Real Estate Investing

#MultiFamilyRealEstate #RealEstateInvestingForBeginners

In this video we will show you the 8 steps you need to take to get started in small multi family real estate investing.

Step #1: Get to know your budget before you take any action

To buy a multi family real estate investment property, you need to analyze your financial situation and set a budget.

As a real estate investor, you should never buy an investment property that you cannot afford.

Step #2: Look for the best financing options

In small multi family real estate investing, you are not limited to paying in cash or taking a conventional mortgage loan.

Many successful real estate investors get started by borrowing money from private lenders or hard money lenders to buy their first investment property.

Financing a multi family real estate property is often easier than financing a single family home as you have multiple tenants, so having zero rental income is less likely.

Step #3: Familiarize yourself with the neighborhood you are planning to invest in

Whether you invest in real estate close to home or out of state, make sure to get to know the neighborhood and the amenities it offers to residents.

It will be easier to find renters for the units in your multi family real estate property if it is located in an area which is safe, with good public schools, public transportation, and hospitals.

Step #4: Build your own real estate team

Multi family real estate investing is not a one-man show.

You need a dependable team of real estate professionals to succeed in rental property investing.

Start networking right away by attending real estate meetups, reaching out to experienced investors, researching real estate investors, and even looking for a mentor.

When investing in multi family real estate properties, your team should include real estate agents, attorneys, lenders, home inspectors, appraisers, property managers, handymen, and more.

Step #5: Search for multi family homes for sale within your budget

When searching for investment properties, you have to stick to your budget.

You can find multi family properties for sale by:
- Checking out online marketplaces with real estate listings
- Hiring a real estate agent who specializes in multi family real estate
- Visiting major bank websites to search for REOs and foreclosures
- Walking through your neighborhood and looking for off market properties
- Visiting the Mashvisor website where you will find multi family real estate properties for sale with readily available analysis of their investment potential

Step #6: Analyze and compare the investment potential of several properties

You need to conduct careful and detailed investment property analysis on a few multi family real estate properties that you have shortlisted.

Base your investment decision on reliable real estate and rental data.

The best cap rate for multi family real estate investment properties is 8-12%.

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Start a 7-day free trial of Mashvisor:
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Figure out how to find multi family real estate properties for sale:
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Explore the steps of the neighborhood analysis in real estate investing:
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Learn how to conduct investment property analysis:
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