The Beginner’s Guide to Finding (and Funding) Small Multifamily Real Estate

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 27 January 2025

⏱️ 39 minutes

🔗️ Recording | iTunes | RSS

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Summary

Small multifamily investing might seem scary to a new investor, but what if we told you these properties are less risky than single-family homes and even easier to buy in many cases? In this episode, we’ll bust the most common multifamily myths that keep rookies on the sidelines so that YOU can take down your first multifamily property in 2025! Welcome back to the Real Estate Rookie podcast! Today, Amelia McGee and Grace Gudenkauf return to the show to deliver a masterclass on small multifamily investing. They’ll show you how to find off-market real estate deals at a deep discount, why cash flow is king when analyzing multifamily properties, and which neighborhoods to target for long-term appreciation. We’ll also get into zoning and permitting issues to be wary of—pitfalls that could wipe out your cash flow if you’re not careful! But that’s not all. Of course, the BIG question on every rookie’s mind is, “How do I get financing for these deals?” and we’ve got the answer! Amelia and Grace will show you how to buy larger properties with low money down and provide you with the perfect pitch for seller financing! In This Episode We Cover: Why small multifamily properties are even less risky than single-family homes Boosting your cash flow by using multiple investing strategies for the same property Taking advantage of HUGE appreciation by targeting developing areas Buying multifamily properties with LOW money down by house hacking The BEST way to pitch seller financing for off-market multifamily deals Multifamily investing “myths” new investors are taught (and why they’re wrong!) Common zoning and permitting issues that can kill your cash flow The keys to managing multiple tenants (and how to keep them happy!) And So Much More! Links from the Show Ashley's BiggerPockets Profile Tony's BiggerPokckets Profile Join BiggerPockets for FREE Real Estate Rookie Facebook Group Real Estate Rookie YouTube Real Estate Rookie 111 - 26 Doors in 1 Year? Here’s How You Can Do It Too! Get RentRedi for FREE with BiggerPockets Pro Membership Maximize Your Real Estate Investing with a Self-Directed IRA Buy Amelia & Grace’s Book “The Self-Managing Landlord” Find an Investor-Friendly Agent in Your Area Real Estate Rookie 401 - Boost Your Cash Flow in 2024 with These “Self-Management” Tips Connect with Amelia Connect with Grace (00:00) Intro (02:27) Small Multifamily 101 (08:32) Finding Deals & Choosing Markets (16:55) Due Diligence & Tenant Management (25:13) Creative Finance Strategies (29:20) Key Systems & Processes (32:11) Connect with Amelia & Grace! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-515 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hey, rookies. Have you ever wondered about how to get into small multifamily investments?
0:05.3	It might sound intimidating, but it's actually a powerful way to build wealth and a real estate portfolio.
0:10.9	A few small multifamilies in there because I love them.
0:14.5	And about half are midterms, half are long terms.
0:17.3	So that's why we also highly recommend small multifamily. Don't get in over your head,
0:22.6	but we love a triplex. We love a fourplex. Today's guests are Amelia McKee and Grace Goodenkov,
0:28.0	and they are returning to the Real Estate Rookie podcast today to give us a breakdown on how to
0:33.3	successfully find and finance multifamily properties.
0:41.3	Okay. successfully find and finance multifamily properties. This is the Real Estate Rookie Podcast, and I'm Ashley Care.
0:45.5	And I'm Tony J. Robinson, and welcome to the Real Estate Rookie Podcast, where every week,
0:50.3	three times a week, we bring you the inspiration, motivation, and stories you need to hear
0:54.8	to kickstart your investing journey. So welcome back to the show, Amelia and Grace. Thank you.
1:01.4	Amelia, let's start with you. And then we can move to Grace, but give us a brief overview of your
1:06.8	real estate background for our listeners if they don't know. Yeah. So if you want the full story,
1:12.0	I was on episode 1-1-1, but I am an investor in Des Moines, Iowa. I've been doing this for five years now.
1:20.3	And I was up to 45 units at one point, but I actually am closing on the sale of my 11 unit today. So I'll be down a few
1:29.1	units, but congratulations. Thank you. We actually, the day we filmed the episode for my
1:35.8	Rookie Podcast, 111, was the day I closed on it. Wow. So full circle. Yeah, Sol is selling that today. I have a mix of long-term, medium-term, and short-term
1:49.2	rentals. Grace and I also wrote the book, The Self-Managing Landlord. We love small multifamily,
1:55.0	so we're super excited to talk about it today. Okay, and Grace, why don't you give us a little
1:58.9	background on yourself? Hi, yeah, I'm also a gal from
2:02.2	Iowa, although I now invests quote unquote out of state because I live in Arizona. But my whole
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