How much cash flow in multi family

[Alexander Parada]

Hello Guys, Question for guys looking to invest by end-of year in a multi family building. Lets say it cost two million and has fifteen doors. Lendor wants 25% down. So mortgage is $9,000 what cash flow would be acceptable per door ? 1.Looking for how much you would you accept $ per door 2. What city do you invest in? Im looking at Houston, Memphis, And Phoenix. 3. How long do you want / reccomend holding for? Is there a point of keeping ? Or only to refi and to repeat the process? Any apartment investors out there lets talk!

[Cody L.]

I just bought a property for $2m so I can help ($2.15m, but who's counting).

I'm going to have to use a made up loan amount since really I had the property appraised at a higher value, and my actual loan amount was more than my purchase price + upgrades so I'm in it for no money -- and it cash flows.  But since that's not always something everyone can do, we'll use more generic #s

A bank would want 20% down (my bank does 80% LTV normally) - or $400k. Let's say 5%, 25 year am. That's $9,300/month.

This property currently has $26k/month in rent (I could raise that up to 32k/month + if I did the same upgrades to the second half that I did to the first half, but that would raise my cost basis so let's forget that right now)

Property tax is $3k, all other crap is about 5k (management, insurance, utils, repairs), etc.  So that's 8k/month in costs, or $18k/month in income.   Subtract that debt service and it's $8,700 in cash flow.  Or $104.4k/year.

I put down $400k.  So my return is 25+%.  On a nice downtown property that stays full no problem and has been super upgraded.  And actually my refi got me all my $ back so it's infinite.

This is why I tell anyone who will listen to buy multifmaily.