Skip to content
×
PRO Members Get
Full Access
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime.
Level up your investing with Pro
Explore exclusive tools and resources to start, grow, or optimize your portfolio.
10+ investment analysis calculators
$1,000+/yr savings on landlord software
Lawyer-reviewed lease forms (annual only)
Unlimited access to the Forums

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
Multi-Family and Apartment Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 4 years ago on . Most recent reply

User Stats

72
Posts
59
Votes
Jeff Gold
59
Votes |
72
Posts

Best formula to determine multifamily purchase

Jeff Gold
Posted

I’m curious what formula investors in this forum use to evaluate multi family investments…

For example, if property is 350k how much are you expecting to cash flow annually? (Net - after Expenses) I would probably attempt to put 10%.

Not sure if mortgage lenders  require more skin in the game with multi family investments. 

Most Popular Reply

User Stats

1,330
Posts
1,510
Votes
Joshua Janus
  • Realtor
  • Cleveland, OH
1,510
Votes |
1,330
Posts
Joshua Janus
  • Realtor
  • Cleveland, OH
Replied

I like to use the One Percent Rule (monthly gross rent is >=1% of purchase price) as a rough rule for my market in Columbus, Ohio at least. Some areas that is never possible, and others it's every single property. Take into account all of the other expenses associated with the MF property as well. Does the area have high property taxes, hoa fees, condition of the roof, appliances, units etc. 
Are you asking whether lenders require a larger return as it is a multi family property versus single?
-Josh

Loading replies...