Multi-Tenant Family Cash-Flow

[Marty Summers]

Alright folks... can you give me an idea if I could put down 25% (300k) onto a 1.24 million dollar multi-tentant family property.  How much should I expect it to cash-flow per month?  Live in Southern Indiana market.  Thanks!

[Nichole Stohler]

Got it... ok, we look at net profit which is almost never what is on the pro-forma.   Because we've had tough times before (BP post here - http://bit.ly/2s0SQil), we estimate $100 per unit per month in profit as a conservative number.  This doesn't mean you cannot do better,  it's just a rough number because things can (and do) go wrong and if you have certain expectations and exceed them, you'll be more encouraged to keep going.   

A re-positioned property is one that an owner has already bought at a great price, fixed up, rented out and is now selling with limited new value-add opportunities for the new owner.    There's less opportunity to make money because you are paying a premium with little upside.     For the property you are looking at, what does the seller/agent/description say?