Multifamily Properties

[Freddy Guillemi]

Greetings everybody!

Previously, I have been focused on investing in the single-family real estate, but now I would like to begin working with multifamily projects. Since I just began exploring this new field, I would appreciate having some advice.

I am searching information about the best ways to invest in this kind of properties, and I found some calculations that can be useful to analyze if it is profitable. According to what I found, the ROI should be more that 15% and the CAP should be around 10%. But, the project I am analyzing now does not reach these rates.

I notice that the vacancy and the repairs cost are too high but that is what I should include in the expenses according to the metrics.

I would appreciate if you took a look at the following information and could tell me if there is a mistake on my end or if I am missing any information.

Thank you,

Freddy Guillemi

[Jeff B.]

Forget 10% and 15% - - it all depends on the location and the property.

I ran a 6-plex for 19yr (see profile) and made lots of ROI that was less than your artificial goals.

IMO, use the NOI as a benchmark: would I be happy with this as an annual return in my checkbook? Use the CapRate to compare one property to another; which is a better use of my funds?