How To Examine Investing In Multi Family - Part # 1

How to Examine an Investment in a Multifamily - Chapter 1 - The First Parameters I Examine

Welcome to a new series of content that I will pass here in the group that the idea to write it arose following questions asked of me to help investors invest out of understanding and knowledge and not just out of trusting the developer / marketer so I actually want to share how I , Submits the proposals, does the judicial and everything behind the scenes.
So if you ever decide to invest in Multifamily, ask the backstage questions and not just the beautiful presentation they made.

so lets start? … ..

So I work with brokers who specialize in multi-family or directly with property owners. You have to remember that the purpose of the broker is to sell as much as possible for the seller and he does not represent me the buyer.
And so before I dive into in-depth testing, I want to do a few quick tests to help me decide if I should go ahead and look into the deal in depth.

1. The first thing I want to check is whether the neighborhood is a resident class neighborhood I am looking for.
I target at least working class residents (which is at least 30K median income per family per year)

2. I'll take a look at Google Street View - what the area looks like. I will look to see what commercial centers there are in the area and also what the private homes in the area look like

If these tests pass the 2 test, I will move on to the next one
(Last Thursday, I received a property from an unpublished broker for everyone and is in a neighborhood I have not explored yet and its status is low class)

3. I will complete the area examination and call a number of management companies that I work with to see if they are selling the property and / or are managing a property near
They knew how to give me information about the area, inside information about the property (sometimes they managed it a year ago) and how much the units could be rented out. I want to see if I have the option of raising the rental value and thus raising the value of the property

4. I'll do a test called Quick and Dirty
This is a test where I roughly check how much the property is worth with the potential rental (i.e. after raising the rental if there is room)
Then I compare to the asking price. I want to see that the asking price does not already contain the increase in value as do apartment owners who have discovered that TMA is starting in their building and they want to sell and take all the profit in advance.

Only if the test passes then do I start the in-depth tests and submit a proposal.

For comparison, buy homes. The initial process is quite similar
1. I'll check out the neighborhood
2. I will check what the value of the renovated properties is worth in the area
3. How much will the renovation cost to bring the house to the level of renovated homes in the area sold?
4. I will check if the asking price already contains the increase in value or leave me a profit too. If so, I will progress to more in-depth testing and submit a proposal

In the next chapter… ..
Write me down on what topic you would like me to write or record a video
Options:
1. A video that shows how I check the neighborhood level
2. How to perform a Quick and Dirty test
What more?

Thanks : )
Rafi