Profit/Cash Flow ratios and requirements on multi-family investments

[Peter Vuong]

Hi All

Forum Noob here, just curious what are your rules or requirements for profit/cash flow prior to making an investment on a multi-family unit? I'm currently looking at an opportunity to buy a 2 family for $260K. I plan to put $10K down on a 30yr mortgage at 4.5%. I estimated the mortgage/tax/insurance/water will total about $1750, Currently both units are rented with a total rental income of $2350, although I may decide to raise rents slightly. That would mean a profit of $600/month or 34%. Thats without putting any estimate for additional required maintenance. Would you pull the trigger on this deal based on this info and what other considerations am I missing?

Look forward to hearing some of your feedback!