New Investor / Multi Family Purchase - Can you help?

[Matt Johnson]

Hey all!

Super excited to be here! I'm completely green, as I know most of you all were at one point also, when it comes to multi-family / property investing so I figured I'd reach out! Its been about of month of non stop re-search and me and my SO have narrowed down a couple markets we're gonna be purchasing in. We are hoping to land either a duplex or a 3 unit that cash flows after EVERYTHING is paid around $150 - $250/mo. We will be living on one side for the first year so those numbers are AFTER our exit. The way we are looking at it is our monthly rent will go down by over half in a duplex / triplex and its something we own so theirs equity pay down on top of that. So we're fine going $500-$800/mo from our end for the first year. 

We've run numbers and everything looks good on a couple properties. Go0d NOI and total annual expenses etc. Calculated in our debt service cost etc. Here are my questions (if you're still with me and would be kind enough to lend your time!)

1. I konw its different for everyone, but is there a good metric you look for when going into a property (assuming the property is in good condition)? Right now I can't find too many down sides and as its our first I feel like I'm gonna get blind sided by something. How would you guys feel on $150 - $250 cash flo on a 2/3plex your in total cash down under $20k? (I believe thats about a 9-14% coc)

3. Have you adjusted any expectations give the top heavy market we seem to be in? Doesn't seem to be a ton of under market deals. Just curious what everyone else is seeing

Anyways! Hope everyone is well and looking forward to connecting!