Intermediate Investment Strategy

Multifamily commercial 5+ units. Here are the key points vs the multifamily residential that I just posted. Determining value is mainly based on how much income the property generates. The more it generates the more it's worth. I will get in more detail with Cap Rates NOI and other metrics once I am done with commercial investment strategies. Property tax rates will be in the commercial realm which is relatively higher then residential Commercial loans require a lower LTV (Loan to Value) hence higher down payment and usually higher rates. You might think why don't I just buy more multi family residential? The beauty of commercial is there are more value add opportunities for the asset to increase it's worth. I will go more in depth on a later post but a basic strategy would be to increase the rents, make a unit much nicer to have higher rents, add a laundry room to add income, or somehow reduce the expenses like sub-metering utilities to the tenants. More later...