My 1st Multifamily - Thoughts and guidance to help gut-check my buy matrix

[Wayne Chou]

Hello BP community, I’m so happy to stumble upon this community. I really appreciate any input and thoughts to help gut-check my matrix before signing the PSA. This is my 1st multifamily investment. I narrow down to 3 deals: 6U, 10U, and 12U. With all of the underlying assumptions being equal, the current rent roll provided the following matrix.

Down Payment - 30% to 35%

ROI – 3.5% to 4.0%

COC - 5.0% to 5.5%

ROE – 22% to 29% (ADU the garages)

The higher ROI & COC are from Section 8.

The ROI and COC are not motivating but the potential ROE with the upsize in ADU was the reason for me to jump in. But, setting aside the potential ROE, is the ROI (net loan P&I) and COC a reasonable buy matrix? I've looked at a dozen deals and none make sense or require 40%+ DOWN!

Thanks in advance.