All Forum Posts by: Jeff Benson

Thanks for the feedback everyone!  Great insight and I will starting looking up that information!  Happy Holidays!  Jeff

BP Members,

I'm new to the multi-family/apt area of RE and I've spent some time analyzing my metro area (and we are thinking of moving to another major metro area-that's another story).  However, I've found a wide range of potential opportunities, but I'm not sure how to narrow down the best area.  I'm looking to understand how to measure the supply vs demand of rental units.  Maybe this simple example will help.

In Suburb #1, I found 10 multi-fam units with good cash flow ($100/door). Lower initial investment.

In Suburb #2, I find only 1-2 MF units with better cash flow ($175/door).  Double the initial investment of #1.

How do I know if Sub#1 has a declining demand for rentals?  Or does Sub#2 have high demand rentals?  How is supply vs demand measure in the rental market (and thus helps to establish the market rent?)?

Regards,

Jeff

Thanks for the feedback, everyone!  I don't see the numbers working on this property.

I'm new to multi-family property investing and wanted the forums thoughts on whether this property had good enough cash flow.  This is a duplex, each unit is ~1000sq.ft.  It's a nice location and in good condition.  Thanks for your thoughts!  Jeff

Listing Price:$159,000

INCOME

Rental Income$1,748 $.85/sqft.

Garage$0

Laundry$0

Storage$0

Misc$0

Total Monthly Income$1,748

EXPENSES

Taxes, Property$350

Insurance$100

Utilities

Electric$0

Water$100

Sewer$50

Gas$0

Garbage$0

HOA$0

Lawn/Snow$0

Vacancy$100

Repairs$100

"Capital

Expenditures (i.e. new roof)"$150

Property Mgr $0

Mortgage $705

Total Monthly Expenses $1,655

 CASH FLOW

Income $1,748

Expenses ($1,655)

Total Monthly Cashflow $93

CASH-ON-CASH ROI

Down Payment $15,900 10%

Closing Costs $5,000

Rehab Budget$5,000

Misc, Other  $0

Total Investment $25,900

Annual Cashflow $1,111

Cash to Start: $25,900

Cash-on-Cash ROI 4.29%