What’s the Reality of Acquiring Positive Cash Flow Multi Family

[MARK F.]

Greetings!

I am seeking the knowledge and experience of seasoned Multi Family Investors.

Investing in Multi Family Buildings has been a dream of mine for several years. A few months ago I graduated from dreaming to educating myself. Now I’ve moved onto the next logical step of drafting a business plan, which I am currently in the process of.

Here’s my question:

What is the reality of finding a small, value added multi-family building with a positive cash flow given current market conditions?

* Assume financing with a standard LTV and a competitive market rate on a commercial mortgage.

* By small multi-family I mean approximately 8 – 32 units.

* By Value Added I mean the property’s value would be increased from relatively minor improvements, increases in management efficiency and/or increases in occupancy.

* For the scope of this question please eliminate considerations of the investors personal time and efforts that could be allocated elsewhere to generate income.