Ryan David is an experienced real estate investor from northeastern PA. Over the years, he’s owned and managed a number of multifamily units. Ryan has built the most successful cash home buyer business in northeast PA, which he conveniently named “We Buy Houses In Pennsylvania.” Below is some of his tips and advice to consider when going shopping for your first multifamily property.
What do investors need to consider before they buy their multifamily property?
Investors had better know their market. If you don’t know the prices of your local market, and where is a good location to buy, then stop and educate yourself. Otherwise, the investor is going to overpay. If that happens, that first purchase will likely be the last one the investor ever makes. You simply can’t spend too much time educating yourself.
What advice do you have for NEPA investors looking to buy multifamily housing?
Investors need to understand what they are getting into beforehand in regards to responsibilities. Will the investor hire a property manager or do that themselves? What about maintenance? What about repairs? Investors need to consider these time factors when making a decision to purchase and also take into the account the fee to hire such professionals needed. There are situations an investor can manage a property by themselves. I encourage new investors to manage their first few rental properties. Once an investor gets a handful of rentals, it’s best to branch out and hire a professional property manager to handle your entire rental portfolio. Trust me, it’s so worth it. The time you’ll gain back alone is worth the fee you’ll pay out. This will allow you to focus on more important matters to grow your business.
What are the benefits of investing in multifamily properties?
The benefits are getting to collect rents from multiple tenants. Cash-flow can start building up very quickly, especially in larger apartment buildings of 4 units or larger. The benefits don’t stop there. Do you want to work for yourself? Do you want to break free from your 9-5 job and work in real estate full time? Making sound purchases on good, income producing properties is the roadmap to achieve success.
Is there any drawbacks to investing in apartment buildings or multifamily housing?
There’s always going to be upkeep and maintenance expenses that need to be considered each month. These expenses need to be considered and saved for by the investor. It’s a matter of time before a furnace needs repair, or a tenant has a leaky sink, etc. Repair costs can get very, very expensive and wipe out an investors cash-flow quickly. This is why a smart investor saves rent roll money and spends it wisely. There’s always risk to investing and becoming a landlord. What if the tenant doesn’t pay? What if you need to evict them? What if a tenant damages the property? These are all risks that an investor has to be willing to accept. Yes, there will always be some level of risk, but the reward is so far beyond the risk as long as you maintain your buildings wisely and make good purchasing decisions.
At “We Buy Houses In Pennsylvania” we are always buying multi-family investment properties (duplex’s, triplex’s, quads, etc). If you have a tenant from hell, looking to retire, moving out of the area, sick of being a landlord, or looking to sell for any other reason, give us a call today at 570-333-8050.