Cash Flow and Debt purchasing multi-family

[Alexis George]

Good Morning!

I have purchased single-family homes for LTR. Now I'm looking into multi-family.  I am concerned about the cash flow regarding how much is a good net profit. I have heard 100 to 300 monthly for single-family. When purchasing a single-family, I try to stay within a budget so that if anything happens my personal money can cover the mortgage, however, adding a multi-family plus my current properties will be very difficult.

What is the best way to purchase a multi-family and not be too concerned about making the mortgage payment and other expenses? Yes it will have tenants, but what if the tenants break the lease? I've been there before, going to court but still didn't get paid.

I see people purchasing one property and month and making a profit of 100 to 200 per month, but how can this be done and not be concerned about making the mortgage payment and other expenses?

[Keith Jablonowski]

That is $100-200/door profit per month, so a 10unit would bring $1000-2000 profit per month after all expenses, debt, etc.  This is just a guideline of course and much more goes into evaluating a property.  But if you can't make at least that per door with some quick calculations then usually time to just move on to evaluating the next property.