6 Flat - Cash flow per door

[Kenneth Garrett]

Hi All,

I typically invest in single family and duplex rentals.  Cash flow is typically $400 and up per unit.

On a multifamily project it seems the cash flow is less per door.  I've seen it range from $100 to various amounts. 

I'm looking at a 6 flat which generates about $216 per door after I plugged in all the numbers into the BP Rental Calculator .    Doesn't seem that great to me.   

Am I not seeing the bigger picture. 

Would like to hear from those of you who invest in multi-families.

[Mike Dymski]

If you are purchasing properties that have all in cash flow to you (including cap ex, management, vacancy, debt service, maintenance, everything) of $200-$400/unit that also include the cost of 100% funding by others, you should stop what you are doing outside of real estate and do this full time.  You can put the pencil or spreadsheet away and buy everything you can.  Let us know if we are missing anything.

Your IRR is infinite.