@Mary M. For early cash flow, that is entirely dependent on the property. We underwrite everything to cashflow atleast $100/door once fully stabilized, refinanced with pulling out all of our capital and accounting for all expenses including capex reserves. We do not want any money to be stuck in the deal once we have repositioned it. This time period can take anywhere from a few months to a couple years. Depending on the level of reposition we are doing, we are usually pumping more into the property than we are bringing in but these costs are recouped through construction lines.
The seller financing deal, on the other hand, is a little bit different. That one was cashflowed just over $100/door from day one. Since we have seller financing in place on it we will not be refinancing it in the near future. We also do not have a construction line so we have been less aggressive with our turns in order to keep it cashflowing better along the way. That property also consistently has high occupancy and fills up pretty quickly when we do have a vacant unit.
These are all long term holds. The only reason we have sold any of the multifamily properties we have bought is to buy something bigger.
Cap rates are a metric that we look at but we honestly don't pay a ton of attention to them especially when purchasing. Location, quality of the asset and how well it is being managed all have a big impact. We are purchasing any of these in order to resell so not targeting a cap rate.
The larger buildings will most likely move to agency once reposition is complete.
