All Forum Posts by: Rory Kelleher

Thanks @Bryan Noth.  In the Boston market and this property is north of Boston.  

As I'm relatively new, I can't say I've analyzed enough deals to know he norm for the market. Spoke to a fellow early investor today and he advised the cashflow is still solid for the market, but his preference is to find places where he can add value and grow the worth of the property vs one that's all updated. 

Appreciate your thoughts and input.  Will have to sleep on this one. 

Also worth mentioning, though the house is old (build in 1900) there has been EXTENSIVE recent work put into the house.  Completely new kitchen (stainless steel appliances, soft close cabinets, new countertops), new boilers, in unit washer dryer (new appliances), new roof 7 years ago. So alot of the major unforseen expenses categories seem to have been addressed. 

Figured this context was useful. 

Thanks again!

Hi All,

First time posting, and really, new to RE investing. 

Is the 1% rule a "must have" for a smart multifamily investment?

Considering a multifamily investment (2 Units, 1/1 down, 2/1 Up) listed for $600k in a "B" location. Conservatively, expect property can rent for 3800/m.  Based off the 1% rule, this property falls well below at .63% which based of the fundamentals of the 1% rule says this property will never be cash flow positive. 

But when i do my own analysis, the property seems to make sense, clearing $745/m NOI. (analysis below)

I guess my question is, should I really be looking for "better" deals?  My goal is not necessarily cash-flow, but rather building wealth over time.  Cash flow obviously helps though. 

Any thoughts or feedback is welcome.  Just starting out in this and looking to learn (and not make a bad deal as my first :))