10 plus units - What’s your goal?

[Michael Baradell]

Hey guys!

What is your goal on cash flow for a multi unit building with 10 plus units? Do you have a specific metric that you are trying to hit in regards to cash flow? I recall hearing Brandon Turner say he looks to hit $100 per door net cash flow. What’s your goal?

[Michael Baradell]

@Caleb Heimsoth For this one, I will be at $148/per door as it sits now. I have not walked each unit yet to know exactly what is needed though, but it appears to be in fairly decent shape. 

This will be an owner financed deal with 10% down, 5% interest rate and a 5 year balloon. 

Current rents are $75 below market rent as is. My goal is to go in and update units to get them up $100, which is current market rent for similar, updated units. Seller is also paying water for tenants, so I will transition that overtime as well.