Multi Family Buying Criteria

[Lauryn Meadows]

Needing some guidance! I've been reaching out to agents to find small- medium sized multi family deals and haven't had any luck. Today, however, I contacted a commercial lending broker at a local bank and he's actually giving me the time of day (hallelujah!). He's asked me to send him my buying criteria via email.

My husband and I are interested in value add multis. With that being said, what's a good place to start on coming up with this guideline for our criteria? I know a reasonable cap rate in my area is 12%. Should I go off of the purchasing cap rate or the ARV projected returns?

Also he's asked about my budget. I explained that if the deal can make money, I have partners that may be interested. (By partners I mean family- maybe). Technically we only have about $30k cash, plus $100k in retirement funds that would wind up being much less than that if we used it to invest in real estate at this time. So $30k isn't much to invest in a multi family with traditional financing. How do I work my way around that question without sounding novice or unclear in my criteria? 

Any other tips on what I should include in this criteria? 

Thanks BP community! I always appreciate everyone's help on here. 😃