I am in Cleveland and have been trying to find the right Multifamily property for a few months. 99% of the properties that have gone on the market seem to be very over priced when considering the 50% of gross income rule and trying to get $100/unit/month. Is this because there are not a lot of properties for sale in this area? Is it bad timing?
I am trying to stay in one of the relatively nice neighborhoods of Cleveland. I could obviously buy a property on a less desirable part of town for much less.
I should also add that in a perfect world, 5 years from now I would have many properties cash flowing. Maybe this is everyone's goal, but that being said. Does it make sense for the first property to be a 2 family home, or would it be more profitable to look for a 3 or 4? I don't have enough saved to pay 20% down on a 5+ unit, so conventional financing is required.
