2 Unit Multifamily property

[LaRaye Alderman]

Hello BPF,

I have located a 2 Unit multifamily  property in Baltimore City and would like to know how do I  work the figures to ensure that it is cash flow acceptable? The property is  currently occupied by two tenants, it has 2br 1 ba in each of the units and the mortgage is $371/mo, the asking price is $74,900. From looking at the pic it can use some cosmetic work. The information sheet states it's turnkey ready.   Is their a way that I can calculate the rent for each unit?   And also, how do I obtain funding from a private investor?  

Thanks in advance for your help,

LaRaye 

[Michael Tucker]

Check rentometer.com and craigslist to compare for pricing. Make sure you take size/bathrooms/ features into account when evaluating, and be conservative when you do your calculations. 

Search the forums to get a better idea of calculations to do a quick look and more thorough investigation if you like what you see. 

I've learned the hard way that if you don't really understand what you're looking for, you'll just be more confused. Look up the 50% rule, 2% rule, NOI, CoCROI, and cap rate. Those should give you enough to evaluate. Then once you figure out how much you have to put down, determine if it makes sense to shop a deal for an equity partner, or seek private lending/HML to fund the deal. Best I can tell you is to go to meet ups and network in BP to find out who may be in a position to lend.