Hello everyone, it’s been a few weeks since I last wrote for you. I was focused on finishing my YouTube series on how to invest in Miami for international buyers, but let’s pick up where we left off... oh, right! I talked about 8 ways to profit in Real Estate. If you haven’t read that post yet, I highly recommend checking it out first—because today’s topic builds on that foundation.
So, why do you think most multifamily deals on the market are garbage? Honestly, I don’t even need more than one paragraph to explain this. It’s really quite simple:
By the time a multifamily deal hits the open market, it has already been picked over by experienced investors. If a deal had real value, it would have been snatched up off-market before you ever had a chance to see it. When it finally makes its way to public listings, it usually means that seasoned investors have passed on it—and for good reason.
Now, the brokers and sellers are hoping that an uninformed buyer (maybe even you) comes along, someone who doesn’t fully understand underwriting, and gets convinced by a smooth-talking agent that it’s a great opportunity. Next thing you know, you’ve overpaid for a property that turns into a nightmare.
What You Need to Watch Out For
Before jumping into a multifamily deal, you need to ensure that the numbers actually make sense. Here’s what separates a smart investment from a bad deal:
✅ Cash Flow: Is the property truly generating positive rental income, or are expenses eating into your returns?
Many beginners make the mistake of overlooking key expenses in their analysis, leading to a negative NOI (Net Operating Income)—a situation you definitely want to avoid.
✅ Forced Appreciation Potential: Can you increase the property’s value through renovations or operational improvements?
More important than just answering this question is accurately calculating how much you’ll need to invest in renovations for the purchase price to make sense. But that’s not where it ends. The most critical factor is whether the market can support your rental expectations post-renovation. If rental rates in the area are already at their peak, you could end up with beautifully upgraded units—but with no tenants willing to pay what you expected. Instead of a great investment, you'd have a major financial headache.
✅ Tax Benefits: Are you maximizing depreciation and other tax incentives that multi-family properties offer?
Ever heard the saying that wealthy people don’t pay taxes? Well, there’s some truth to that—legally. By leveraging depreciation, tax write-offs, and strategic use of debt, you can significantly minimize your tax burden and increase your overall returns.
✅ Exit Strategies: Do you have multiple ways to profit from this deal—holding, refinancing, or selling at the right time?
If your only plan is to hold the property and hope it appreciates, you might be setting yourself up for disappointment. A solid investment should have multiple exit strategies, allowing you to pivot based on market conditions and maximize profitability.
The reality is, most deals listed publicly fail to check these boxes. The best opportunities are usually secured before they ever hit the open market—through networking, off-market connections, knowing where to find the right deals, and understanding how to analyze a deal properly.
How to Avoid Getting Stuck with a Bad Deal
I’m not saying this to scare you away from multifamily investing. On the contrary—I want to arm you with the knowledge to analyze deals properly. If you don’t know how to underwrite a deal, assess the real numbers, and determine the right price to pay, then you’re setting yourself up for failure.
That’s where professionals like me come in. My job is to help you find deals that actually make sense for your investor profile—not just what’s being marketed to the masses. If you’re serious about investing the right way, let’s talk.
📩 DM me or book a call to discuss how I can help you secure the right multifamily investments. [Book a Call]
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