Multi Family Income Goals

[Raymond Hill]

Hello, 

My Fiancee and I are starting the process to find and purchase a multi family. We want to know, what type of systems should we use to analyze if the property will produce cash flow, what others are using to evaluate multi family properties. Lastly, the amount of money per month lets say for a 3 family property on average should we be making that is "considered" a great investment

P.S. What is the best financial path to obtain the property. I.E. FHA, Conventional, Lease to Own, Seller Finance.

[Omar Khan]

@Raymond Hill Before giving an answer it would be helpful to understand your goals, objectives, constraints, budget and investing experience. 

There is no one set path to financial prosperity. Everyone's needs are different.

A good investment constitutes different things in different markets. For instance, you should, reasonably, expect to get $150/door in Midwest markets. But best of luck getting that (with any ease) in San Francisco, Seattle or LA. The market dynamics would be very different. Similarly, your cash on cash, cap rate and all other investment metrics will greatly differ from market. 

Just because the markets mentioned above don't cash flow, doesn't mean they haven't proven to be excellent markets. Just that the nature of the returns (and your expectations going into a deal) vary.