How Much Cash For First Multi?

[Legacy Dad]

I am currently holding off on any more SFH and focusing entirely on Commercials. For some of the BTDT (Been There Done That's) what is the amount of cash needed to get started?

I know it varies by deal and size but give me a ballpark figure?

I remember SteveO saying something like 50k?

Lance

 

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[JesseO]

It varies a LOT by state. If it's a commercial (5+ units) property, you will need 20% down, and you can use other people's money or partnership for this of course. If it's 4 units or less, you can do creative financing, so the amount needed to purchase a property could be as little as no money down. What are you shooting for? How much are you wanting to invest in to start?

 

[Legacy Dad]

4-8 Units, Probably 20% Down (between my cash and CRE)

Looking for 8% Cap Rate or better

Purchase 90% under FMV

Preferably in a non-bubble market

 

[ProInvestor]

Depends on market values really and whether you have a real don't wanter (landlord whom is willing to do notes, etc).

$50K PLUS (notice the CAPS).

Rgds.
ProInvestor

 

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[SteveO]

Figure anywhere from 10-20% down. 20% is more typical without some seller carry.

If you want to start with a higher unit count, you could partner with others.