Cash Flow Goals For Multifamily Investing

[Kyle Labelle]

Hello, I am new to Biggerpockets and just started looking into REI. I am currently trying to consume as much information as I can get my hands onto. I am planning on house hacking my way into REI and plan on purchasing a multifamily home in 12-15 months as I continue to save and learn.

The question that I have is in regards to cash flow goals: For those investing in multifamily homes, what number are you looking for, per unit, to justify considering that property? I am planning on looking for homes in the South Shore, particularly Bristol and Plymouth counties.

Thanks in advance for any feedback!

[Jonathan Bombaci]

Hi Kyle to agree with Charlie and Jesse. Every area will be different and you’ll need to educate yourself on the areas your interested in buying so you can set your expectations accordingly. It’s also going to be different if you’re planning to househack a duplex, triplex, or Quadplex. Duplex might be great personal investment while you’re living there someone is paying part of your mortgage, but with a 4plex you should be able to live for free or get paid to live there. 

With all that being said I’m buying large multi families (7-16 units) in northern NH and I won’t touch anything that won’t net $150 a door within the first 2 years. 

Do some research, attend some local meetups, and develop your own criteria for your first househack. That criteria will inevitably change over time as you go from your first deal to your 10th and that’s to be expected.