Average price per unit for multifamily properties

[John Hewitt]

I understand this is a very broad question and there are a lot of things that go into the price of a multifamily property such as class of the apartment, market, NOI, size, etc. With that said, I was wondering if I could get a broad answer. What is the range one would expect to pay per unit for a multifamily property. Just curious, thanks for any input.

[Bryan Mitchell]

Everyone should determine what their sweet spot is. What do you need to make per unit? Brandon Turner has stated that he was okay making $100 per door. I personally prefer better than that. Another standard of measure is the 2% rule. For instance if the unit costs $35,000 you would make $700 in rents. I personally prefer at least $800 in rents. So, I would pay up $40,000 per unit for $800 rents. If it passes the test,  say you’d still need to dig further, but this is a good start. If the cost of the unit is more than this, it should be in good condition and/or there should be value add opportunities.