@Hilary Hill . Your question doesn't have a lot of information to actually deep dive into a good logical explanation of this particular scenario you are referring to. How many units are we talking about? How much money was put down?What market is this? Did the person invest for cashflow or for appreciation? The answers to these questions matter to understand the rational. Is this a use case from an experienced investor? Did the person just purchase a deal without doing lots of analysis? Was there unexpected expenses, which wasn't properly accounted for? Was the purpose of this investment just trying to diversify/park money?
It’s possible they meant $200/unit/month profit, which is decent enough, particularly if you’re starting out.
$200 is pretty thin on a multifamily, I wouldn't settle for that generally, but the biggest advantages of real estate, IMO, is the long term appreciation/principal paydown. So as long as you stay afloat (especially if you bought with equity and don't have much of your own money in the property) eventually you will pay off enough of your loan and the property will appreciate enough that you will have built some real wealth. Cash flow is nice and can eventually add up. But it's mostly important to keep you liquid so you don't have to keep feeding such properties and risk running out of money entirely.
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