Honolulu Real Estate Investing & Real Estate Financial Planning™ Podcast

Secrets of Analyzing Multi-Family Properties

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Learn the secrets of analyzing multi-family properties in Honolulu.

This class is Module 39 of 46 in a series called Real Estate Investing Secrets.

Topics covered in this module include:

  • The differences between analyzing a multi-family property with commercial financing and a single-family home with more traditional financing
  • Obviously, the numbers are larger when you’re analyzing multi-family property deals, but what about the nuance of the increases
  • How to deal with the listing and getting info on analyzing these types of deals
  • The difference between actual and pro-forma numbers
  • Why you might not be able to see all the units prior to making your offer and how it typically works with larger multi-family properties
  • Why and how to make adjustments to numbers provided to you
  • Determining the value of the property (ARV) and understanding the difference between these multi-family properties and smaller properties
  • Negotiating with multi-family sellers and their agents/brokers
  • How is financing different for 5+ units compared to financing < 5 units
  • What lenders typically look for when financing 5+ unit commercial loans
  • Down payments on 5+ unit commercial loans
  • Debt Service Coverage Ratios… how to calculate it and how it is used when analyzing multi-family properties
  • How amortization/loan term changes with multi-family financing
  • How interest rates differ from more traditional financing
  • The ugly truth about pre-payment penalties with 5+ unit commercial financing
  • Can lenders really insist on reviewing your financials every year when getting commercial financing
  • How closing costs change when analyzing multi-family properties
  • Analyzing properties where you are improving their economics… and how to represent that with rent ready costs
  • Why you’re much less likely to have to use cumulative negative cash flow when analyzing multi-family properties… and it is NOT because the properties cash flow better
  • Modeling monthly rents and monthly other income—especially if you’re improving rents—when analyzing multi-family properties
  • Correctly analyzing vacancy rates for multi-family deal analysis
  • Why you can’t just use the property taxes in the listing when analyzing these deals
  • Why you should call your insurance agent instead of using the seller’s insurance costs during deal analysis
  • Dealing with landlord-paid utilities on multi-family properties including modeling switching to billback for utilities
  • What common expenses might you see when analyzing multi-family properties
  • Dealing with maintenance and capital expenses during multi-family deal analysis
  • A word on liquidity challenges with multi-family
  • Multi-family pros and cons
  • Plus much more...

    • Check out the video and additional resources related to Secrets of Analyzing Multi-Family Properties.


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    Honolulu Real Estate Investing & Real Estate Financial Planning™ PodcastBy James Orr