What are people paying for 50 unit multi family?

[Benjamin Bleasdale]

So some of the things I hear from real estate are.

1. Every one wants to be in multi family

2. 50 units or more is ideal.

With that said, what are people paying for 50 or so multi family units?

Rather than buy a sfr or duplex if I could save up the 25-30% down for a multi maybe that would make more sense? Just thinking 

[Jonathon Weber]

Originally posted by @Benjamin Bleasdale:

So some of the things I hear from real estate are.

1. Every one wants to be in multi family

2. 50 units or more is ideal.

With that said, what are people paying for 50 or so multi family units?

Rather than buy a sfr or duplex if I could save up the 25-30% down for a multi maybe that would make more sense? Just thinking 

 The costs to buy apartment complexes with a lot of units has been on the rise and there is a big reason for it -  millennials aren't buying homes. 

Multi-family is the easiest way to get super rich. In some markets you can find a 49-unit property priced at $35K per unit with an 8% cap for $1,75M.

If you pay cash for this deal at $1,75M, you would make roughly $140K for cashflow per year after expenses. With $450K down and financing $1,3M, the debt payment would likely be around $78K per year. This would make you $62K cash flow per year. This cannot be done without buying a ton of homes.

You could take the income from the cashflow, after taxes, and reinvest it into another purchase of another large apartment complex. You can also sell the apartment complex and do a 1031. Keep repeating this process until death and let your kids take things over. They will not have to pay taxes up to a certain amount. 

Multi-family is by far the world's best way to create legacy wealth. Cash itself eventually gets spent generation after generation, but if a large apartment complex stays in the family generation after generation, the cashflow remains in the family. 

When you get up to the 200+ unit properties you are competing against very wealthy individuals, funds, life insurance companies, and others like Blackstone.