Originally posted by @Mike Lambert:@Jon Latorre$100k+ sounds nice but it's not the same return whether the property costs $2 million or $5 million.My question was what is the typical rental yield range?

I bought a business where the prior owner had it in an S-Corp, the S-Corp and he was sued personally for three million.

I wanted to share some key insights from Rentometer’s analysis of over 5 million rental searches in 2024.

But if say 15 unit and 30 unit are both 5 million, 7 CAP,  or a 12 unit and 20 unit for 2 million 6 Cap. why would you choose one over the other?

I know I had no experience in MFR when I brokered my first deal and it was a 5 million dollar multi. 

My “reasoning” is based on two points1- the current system of property records filing in a million different jurisdictions with expensive title searches necessary for almost every title transfer and mistakes still being made can be made much less expensive, much faster, and much more reliable through migration to some sort of “blockchain” National registry.2- Numerous investments have been divided into, and offered as tranches of the whole.  

But there are a MILLION different ways to structure this, and your friend may come back with his own ideas/requests.

With less experienced or just poor planning operators, it isn't uncommon that they spend years distributing all the cash out to the owners, and then the time comes for a multi million dollar refresh to maintain the hotel brand, and no one wants to cough up the money back into the entity.

Fund IV is raising 150 million in equity. 

Pros of RE:- leverage (can house hack and put 3.5% down FHA, 5% or 10% down conventional loan if you live in one of the units, 2 to 4 unit or buy single family, live in it and rent out each room and buy a $500,000 or $1 million asset).