Waiting for interest rates to drop before buying multifamily is a losing strategy.
When rates drop, prices go up and competition floods in.
Buy now, lock in cash flow, refinance later.
Would you rather own:
A) 10 single-family rentals across town
B) One 10-unit apartment building
Same unit count. Very different management, financing, and upside.
My answer is B every time. What's yours?
5 numbers that matter in every multifamily deal:
1. Cap rate
2. Price per unit
3. Occupancy rate
4. Rent-to-income ratio in the market
5. CapEx needed in the next 5 years
If you can't answer all 5, you're not ready to make an offer.
“Location. Location. Location.” Is lazy advice
The real formula is: cash flow, cash flow, cash flow.
A great location with negative cash flow is a liability. A boring location with strong NOI is an asset.
Buy the numbers, not the zip code.
Debate — Turnkey vs. Value-Add
Settle this: Would you rather buy:
A) Fully stabilized, turnkey 20-unit at a 6% cap
B) Value-add 20-unit with deferred maintenance at an 8% cap (after renos)
No wrong answer — but your pick tells me what kind of investor you are.
Monday Question — What's Holding You Back?
Honest question for anyone thinking about buying their first apartment building: What's the #1 thing holding you back?
A) Don't know where to start
B) Don't have enough capital
C) Scared of being a landlord
D) Can't find the right market
Drop your answer. I'll respond to every one.
The difference between residential and commercial real estate lending:
Residential = based on YOUR income
Commercial = based on the PROPERTY'S income
That's why multifamily scales faster. The building qualifies itself.