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Updated about 6 years ago on . Most recent reply
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Average Profit Per Unit- $100 per month?
Is there such a thing as average profit per unit for Multi Family?
I see some variations, however the median range seems to be around $100 per unit per month.
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Seems really low. I only have duplexes, so, not really MF on a big scale. And I wouldn't touch a duplex with $ 100 potential profit per side.
Also, it depends on how you calculate. $ 100 - after what deduction?
Keep in mind that banks/mortgage companies only count 75% of your rental income for you to qualify for another mortgage. So, if your cost of the unit is $ 900 and your rent is $ 1000 and you consider the difference your profit ......the bank will only count $ 750 as rental income. So, with such a low margin it would be difficult to get future financing.