I have checked in the new jersey area and multi family inventory is scarce in the desirable neighborhoods.

So your 25% ROI may not actually be that high when you factor in high turnovers rates, high property management costs, and unexpected capital improvements.

Basis = what you paid + capital improvements - depreciation to date.  

Taxes will be around 20% of your actual profit (sales proceeds minus purchasse price/costs, plus any improvements you did).  

The key is the inventory must keep moving.We spend our own money to lock these properties in.

Here's another article about the January 2016 sales in Memphis.For what it's worth, I just spent the day (Wed 2/10/16) driving around town looking at Class A and B properties with a CA hedge fund and was shocked by the lack of available inventory for sale.

They start coming out in the spring when there is a huge push for home improvement.  

Great time to get into the market with inventory and rates where they are at now.Let me know if you have any questions.Regards,Joe Scorese

Lots of rough areas but lately getting an infusion of improvement.

House hack a  4 plex, improve credit score to 700, triple my income from last yearProgress towards this goal:Working on increasing my income from my career in real estate and also doing some credit repair this will help me more so for the upcoming years and help gain some credibility with lenders.