There just aren't many good deals to pitch to investors and the market is full of bad deals. Funny you bring this up because I had a call earlier today on this
Brehs, I am studying and networking to become elite at Multi Family unit investments
- Thread starter #1 pick
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Makes sense to use my fha on a multi. Live in one of the units and have the others pay my rent. But i want to avoid mortgage insurance so conventional might be the move since i can pit down 5-10%They are typically half a point to a point less than conventional. So like right now depending on credit conventional is around 7 to mid 6 and you can get low 6 maybe high 5%. FHA is just a little looser with their requirements (lower credit scores, Higher debt to income ratios, etc. ) but you will have mortgage insurance to deal with untill 11 years or getting 80% of loan and closing cost can sometimes be more because of the upfront cost of mortgage insurance.
alot of people and even builders were also offering to buy down the rate and to get the interest rates lower for a period of time. A good mortgage broker should be able to play with numbers in your favor.
Disclaimer: work with your local mortgage professional, they should be able to get you right
You'll still have PMI until 20%.
Ahh i see.
skyrunner1
Superstar
Mannn I was looking at some little pockets I am familiar with just to see whats going on and the trends the last few months and the smaller multi price points are CRAZY.. Been keeping an eye on a dam near abandoned 4 unit across from a duplex I have and I said let me call the rental sign to see if they would sell, dude was asking for a million dollars
Said he had plans drawn up and was gonna pop the top and build 4 more units above, would sell with plans.. 
Also offered to buy my property as is cash for like 550k.. We were all in on that for 230k right before covid.. Im really tryna see where I can find the next local deal, gonna have to go out of town to really get it poppinskyrunner1
Superstar
Might as well bump this thread also, @#1 pick , you got anything cooking on this end? One of my realtors linked me up with some Cali bros that did new construction on mansions out west but then got into buying apt buildings in south florida. Dudes buying up buildings in Overtown, Little Haiti, Little Havana areas. Like 20 to 40 units, gutting them and repositioning with new tenants, then cashing out. Been working with them last couple months and main thing I took from it is the vanity of building from ground up is cool but the returns on repositioning a multi family make more $en$e.
What we looking like 2nd half of the year..
What we looking like 2nd half of the year..
Oldschooler
All Star
Explain what you mean by bad deals. Are sellers delusional with their pricing? Are the interest rates making your ROI disappear? Is it hard getting cash flowing? Dealing with bad tenants? Maintenance costs sky rocketing due to inflation?
Sound like these fellas have deep pockets. The Miami gentrification areas you mentioned aren't cheap.
skyrunner1
Superstar
Yea they definitely do but from learning from them they use very little of their own cash (obviously that comes with having a track record), they had mostly banks funding their projects. But its like hard money, so if you understand the process on single family, you can do it on bigger scale. They had draw schedules and such.