Listen "Secrets of Analyzing Multi-Family Properties"
Episode Synopsis
Learn the secrets of analyzing multi-family properties in Hampton.
This class is Module 39 of 46 in a series called Real Estate Investing Secrets.
Topics covered in this module include:
The differences between analyzing a multi-family property with commercial financing and a single-family home with more traditional financing
Obviously, the numbers are larger when you’re analyzing multi-family property deals, but what about the nuance of the increases
How to deal with the listing and getting info on analyzing these types of deals
The difference between actual and pro-forma numbers
Why you might not be able to see all the units prior to making your offer and how it typically works with larger multi-family properties
Why and how to make adjustments to numbers provided to you
Determining the value of the property (ARV) and understanding the difference between these multi-family properties and smaller properties
Negotiating with multi-family sellers and their agents/brokers
How is financing different for 5+ units compared to financing < 5 units
What lenders typically look for when financing 5+ unit commercial loans
Down payments on 5+ unit commercial loans
Debt Service Coverage Ratios… how to calculate it and how it is used when analyzing multi-family properties
How amortization/loan term changes with multi-family financing
How interest rates differ from more traditional financing
The ugly truth about pre-payment penalties with 5+ unit commercial financing
Can lenders really insist on reviewing your financials every year when getting commercial financing
How closing costs change when analyzing multi-family properties
Analyzing properties where you are improving their economics… and how to represent that with rent ready costs
Why you’re much less likely to have to use cumulative negative cash flow when analyzing multi-family properties… and it is NOT because the properties cash flow better
Modeling monthly rents and monthly other income—especially if you’re improving rents—when analyzing multi-family properties
Correctly analyzing vacancy rates for multi-family deal analysis
Why you can’t just use the property taxes in the listing when analyzing these deals
Why you should call your insurance agent instead of using the seller’s insurance costs during deal analysis
Dealing with landlord-paid utilities on multi-family properties including modeling switching to billback for utilities
What common expenses might you see when analyzing multi-family properties
Dealing with maintenance and capital expenses during multi-family deal analysis
A word on liquidity challenges with multi-family
Multi-family pros and cons
Plus much more...
Check out the video and additional resources related to Secrets of Analyzing Multi-Family Properties.
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