Doesn't translate to Super Bowl success.

If each unit is vacant one month per year, this will translate to a vacancy rate of (8.33% + leasing fee of 4.15% = 12.45%)* Annual turnover will also lead to high unit turn expenses of perhaps $700/yr/unit, plus or minus depending on need for flooring replacement, though you'll always have to paint and clean.* There are a few economies with 4-plexes vs SFRs, but these get wiped out by having to pay utilities, lawn and common area maint, and higher turnover and more issues from people living in close proximity to one another.* I'd run expenses/vacancy/capital at least 55% of gross potential rent.

This translates into a 12% return .

Thanks Brandon Turner, that helps a lot.The bank wouldn't give me specifics on what whether what we were planning to alter would make it a 4 unit, pretty much said that if the city said it was a 4 unit they'd go with that.

The contract's fine print clearly states "Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders and will become an extra charge over and above estimate.”I think is shady to say it took nearly double as much fill.

Fun game, especially when you translate it to reality.

If you hire a PM to manage it, you're going to pay them $150 a month plus $750 to do a turnover.A nice home doesn't translate into higher rent.

If one relocates frequently due to work, why buy and be tied down to a death grip (english translation of mortgage).Just my 2 cents.

Ryan Hutchison:As Mike indicated, more is better ;) In hindsight, if I were starting again, I would probably look only at quadraplexes or more.Not only does a vacancy in a multi not translate into a complete loss of revenue, but your maintenance/CAPX per dollar income is lower {i.e. there is only one roof}

I just have first hand experience with MLM so I have seen how the principles translate to Real Estate.