Buying my first small multifamily

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Hi, 

I have been working for the past 5 years to purchase my first deal. I have been paying debt, saving money for DP and CC. I live in Orlando and I am having difficulties finding a quad for less than $665,000 that will produce 1% or more in rental income. 

Do you may know an area where I can find a quad for $200,000 or below that can bring maybe 2% in rental income? 

Thank you for sharing!

Jose

[Mike Smith]

Jose,

I was also taught the 2% rule for multi-family investing. The current problem with interest rates below 3% is the enormous amount of capital that is now chasing yields. I'm in Idaho, in an our area SFR do not even get close to 1%, most are around 0.5%. Most newer quads are priced 700k+ and typically rent for about $1300 per unit, so they are running about .75%. I agree with other posters that the MidWest may be the only opportunity to purchase a quad for 200k, however, some of those areas have net out migration, so it's only a matter of time for rents to start to decline, and decline drastically for less desirable rentals.

Instead of purchasing a quad outright, you may get better returns investing in several syndication deals where economies of scale can help you.  Just my .02