How Much Per Month On One Million?

[Luke Carl]

In the market for a small apartment building.

One million purchase price.

Let’s say hypothetically 15 units.

What does each unit need to rent for to make it a good deal?

Your thoughts?

[Will Fraser]

Hey @Luke Carl!  I'm betting your simply looking for thoughts here and not guidance (you rockstar you!) so I'll think through that lens:

If I was deploying $1MM on a small apartment building I would want either

• $10k per month in cashflow IF I had access to long-term, fixed-rate, cheap debt on it (hard at this price-point)
• $100 per unit, s $1,500 per month of true cashflow.

Realistically I'd shoot for the upper number here and would expect the units to need to be rented somewhere around $1,100 per unit per month to hit those numbers (with a LOT of assumptions being made to get there, ha)