Real Estate Rookie The Beginner’s Guide to Finding (and Funding) Small Multifamily Real Estate
27 snips
Jan 27, 2025 Join real estate investors Amelia McGee and Grace Gudenkauf as they delve into the world of small multifamily properties. Amelia, an experienced investor from Iowa, and Grace, who specializes in mid-term rentals in Arizona, debunk myths that deter rookie investors. They discuss how these properties offer less risk and better cash flow than single-family homes. Insights on finding off-market deals, navigating zoning issues, and creative financing options like seller financing are also covered—equipping you with the tools to jumpstart your investing journey!
AI Snips
Chapters
Books
Transcript
Episode notes
Lower Risk with Multifamily
- Small multifamily properties offer less risk than single-family homes due to diversified tenant income.
- Multiple tenants mitigate vacancy risks, unlike single-family properties where vacancy means zero income.
The 1% Rule for Multifamily
- Prioritize multifamily properties that meet the 1% rule (rent equals 1% of purchase price).
- This ensures cash flow and covers expenses, especially important since multifamily property worth is tied to cash flow.
Fiveplex Success Story
- Amelia McGee bought a fiveplex for $305,000, converted two units to mid-term rentals, and achieved a 19-20% cash-on-cash return.
- This demonstrates successful multifamily investing by diversifying rental strategies and leveraging off-market deals.
