what should I be looking at for a first CRE ?
I have liquid $200k as down, and looked into a few multi family, office, retail etc. Cant make up my mind on it. 

Any suggestions ? and how much leverage as far as streching the dollar with loans etc I am looking at ? I am mostly looking for investment and cashflow etc. 

Thanks 
[{"id": "ebi36jc", "text": "Multi family will be easiest to finance. Commercial will be easiest to manage. Multifamily will be easier to tenant, commercial could be vacant for months. All commercial incl. multifamily will have higher transactional costs like inspections, mortgage application, etc. And by commercial I mean office/industrial/retail etc. \n\nHow much experience do you have with all this?", "replies": [{"id": "ebi3erz", "text": "A lot of experience on the management side, but none on financing etc. ", "replies": [{"id": "ebi3z0f", "text": "$200k isn't much to be honest. If it were me I'd get into a triplex or fourplex. Location matters.", "replies": [{"id": "ebi6ewq", "text": "Gotta start somewhere right ? I am looking for 10 units minimum due to risk etc. If I go for Quad then 1 vacancy = 25% vacancy. Where as a 10 unit apt and 1 or 2 vacancy could be 10-20%.\n\n", "replies": [{"id": "ebi80df", "text": "Build that into a worst case scenario model. ", "replies": [], "depth": 5}], "depth": 4}, {"id": "ec3cy63", "text": "$200,000 is plenty. \n\nI know a sponsor who recently purchased $40,000,000 worth of class a office with less than $100,00 of his own money in the deal. ", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ebia5jt", "text": "If you want to minimize risk like you suggest in one of your comments, try to get. 4 or 5 pkex for cash. Fully paid off it will be super easy to manage, safe, and cash flow like crazy. \n\n", "replies": [{"id": "eblbsc1", "text": "&gt;try to get. 4 or 5 pkex for cash. Fully paid off it will be super easy to manage, safe, and cash flow like crazy.\n\nGeez, that crazy cash faux is just your own money being dribbled back to you monthly.  Crazy is correct!", "replies": [], "depth": 2}], "depth": 1}, {"id": "ebirw7p", "text": "We do business properties.\n\nTriple net, 75% loan to value.  Minimum 7% cap rate, good long lease with a stable corporate tenant.\n\nSee loopnet.com\n\n***\n\nResidential properties are a nightmare.", "replies": [{"id": "eblbns4", "text": "&gt;Minimum 7% cap rate,\n\nWhy would you have a minimum cap rate?", "replies": [{"id": "ebltzka", "text": "Because you want it to be higher than the cost of money.\n\nDo you know what minimum means?", "replies": [{"id": "eblw83x", "text": "But a cap rate is not a return.   It is a measure of the market interest in NOI.  So a 7% minimum is ridiculous.   I can sell you at 7 % cap rate in 10% cap rate markets all day long.   ", "replies": [{"id": "ebm4d6q", "text": "Maybe we are talking about different things.\n\nA cap rate for me is rents/cost.  This needs to be far enough above interest rates to make it profitable.", "replies": [{"id": "ebmp742", "text": "&gt; rents/cost  \n\nCap rate is NOI/cost and is the result of the income approach to value called direct capitalization.  Cost/rents is GRM gross rent multiplier.  If your market is paying 7 times rent then you would not want to pay 8 times.  Having any minimum number is dangerous as the market could change and you would over pay.\n", "replies": [{"id": "ebn46v8", "text": "Every offer of commercial real estate offer I see defines Cap rate as (yearly rents)/(cost of property)\n\nWe need this percent to be significantly above any interest rate we pay on a mortgage.  The actual value of the property is irrelevant since we are actually buying an income stream (lease).\n\nFor example, we are in escrow on a brand new built-to-suit property which is going to be occupied by a stable tenant with a 15 year lease.  The Cap Rate (as I defined) lets say is 7%.  We can finance 75% LTV at a rate low enough to have a good income out of this property.    The fact that the actual value of this property is lower than we paid for it is irrelevant.  \n\n\n", "replies": [{"id": "ebn5pey", "text": "&gt;Every offer of commercial real estate offer I see defines Cap rate as (yearly rents)/(cost of property)\n\nCap Rate =NOI (net operating income}/market value.  And is a measure of the demand for the NOI in that market at that time for that asset type.  If the NOI's are selling at a 9% cap rate then you could take the NOI of the property you want and divide it by the market cap rate and then know the approximate value of the NOI.  Say $100,000 NOI/9% cap rate and the value would be about $1,111,111.\n\nWhere do you get the \"cost of the property\"?  That would be a major problem in your calculation.\n\n&amp;#x200B;", "replies": [{"id": "ebp70uw", "text": "We are doing the same calculations but in reverse.", "replies": [], "depth": 9}], "depth": 8}, {"id": "ebn9ute", "text": "&gt;The fact that the actual value of this property is lower than we paid for it is irrelevant.\n\nHow would you know the \"actual\" value of the property?  And if you had to sell and you overpaid then you would lose money.", "replies": [{"id": "ebo5aop", "text": "How does anyone know the actual value of a property?\n\nOur metric is how much we can lease it for.", "replies": [{"id": "ebogqnj", "text": "&gt; Our metric is how much we can lease it for.\n\nOK, how does that work?", "replies": [{"id": "ebp6wrs", "text": "We buy a property with a long stable lease that pays more than our mortgage payment.\n\nThat's all there is to it.", "replies": [], "depth": 11}], "depth": 10}], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ebiywms", "text": "One of the worst things you can do is overextend yourself on a first deal, leverage-wise, for three reasons:\n\n1. Small commercial loans typically will be harder to get, and the leverage will be lower. Fannie Mae and Freddie Mac don't do loans that small in multifamily, neither does CMBS, so it's local and regional balance sheet lenders (banks and credit unions) who will give you the best rates. Those lender typically don't like max leverage loans, so you'll add stress locking that up during closing, or risk losing a deal.\n2. Though you're right that more units = less vacancy factor per unit, it still won't be large enough to weather a lot of vacant units (or a single tenant leaving in commercial). If you're overleveraged, your loan's minimum DSCR ratio could come into play quickly.\n3. You'll likely make the most mistakes on your first deal. Make your mistakes in a safe scenario where you won't lose a property to a bank.\n\nI hope this doesn't come across as discouraging. Get in the game, just don't overleverage deal #1!", "replies": [], "depth": 1}, {"id": "ebjefvh", "text": "Retail is seen as a dying asset class, office is complicated because of the costs of HVAC and elevators. Multifamily is the logical property type to invest in.", "replies": [{"id": "ebjehae", "text": "Or possibly invest in Industrial if it makes sense in your market.", "replies": [{"id": "ebjgmu0", "text": "If he\u2019s in NJ he should", "replies": [], "depth": 3}], "depth": 2}, {"id": "ebk65cb", "text": "&gt; Retail is seen as a dying asset class\n\nOnly to people who don't understand it. Retail will be priced appropriately.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ebk644y", "text": "you should be looking at the market cycle we're in lol", "replies": [], "depth": 1}, {"id": "eblldc6", "text": "So i am looking at a 9 unit townhouse. Priced at $850k and cap rate of 8.20% 100% occupied.", "replies": [{"id": "ebnboey", "text": "&gt;Priced at $850k and cap rate of 8.20% 100% occupied.\n\nThat cap rate only exists in the sellers mind.  If other similar properties have sold at a 10% cap rate then you are overpaying.  The seller thinks his NOI is $69,700.  If you assume that number is correct then the value is $69,700/10%= $697,000.   He is taking advantage of you if you do not understand cap rates.\n\nYou'd get a better idea of value using GRM's.", "replies": [], "depth": 2}, {"id": "ebsm4ny", "text": "Location, location, location.\n\nDepending on the market or location, the sales price and cap rate are adjusted to the market. ~~For example,~~ multifamily properties market can have a different range depending on each location.  You should look at price per square feet, and price per unit also when looking for deals.", "replies": [], "depth": 2}], "depth": 1}]