Hey folks, hope you’re all having an awesome start to the year! I’m a small real estate investor with a couple of properties, each with less than five units, in Chicago. Now, I’m teaming up on a new venture and looking to move up to a 6-12 unit property that needs some fixing up to increase its value.
This step up brings some new challenges in terms of financial analysis. I need to consider things like a construction-to-permanent loan, potential vacancy during renovations, refinancing, and more. The simple model I’ve been using for smaller deals where I pay for renovations out of pocket just won’t cut it this time around.
I’ve been diving into some research and experimenting with more sophisticated spreadsheets for analyzing multi-family properties. But, honestly, some of these sheets seem a bit over the top for deals of this size (probably less than ten units). So, I’m thinking maybe I should start with a quick initial check or a rough analysis to see if a property is worth digging deeper into. Then, after checking out the place in person, I can get into a more detailed evaluation.
I’m reaching out to all you seasoned experts out there who’ve been through this process multiple times. I’d love to hear about your approach to financial analysis for multi-family properties and any useful resources you recommend checking out. Thanks a bunch in advance for any advice you can share – it’s much appreciated!