Multifamily property investors
When looking for a multifamily property to buy what things do you look for? Do you look for all units already rente? Maybe a property you will have to flip? What makes a property a deal breaker?
Most Popular Reply
In descending order:
1. The numbers. I look for places that are going to return $125/month/door AND 15% Cash on Cash return.
2. The neighborhood. My favorite buys are the classic "worst place in a good neighborhood." Local knowledge is helpful here. Barring the ability to pick up a cheap place in a good spot, I try to get the vibe of the neighborhood. Are people going to enjoy walking around? Can they get to food shopping easily? Are parents going to feel okay turning their kids out to play?
3. The current tenants. You want tenants that are eager to stay, even if you intend to take the place over vacant. In my opinion, if they want to stay, they probably have a solid relationship with the current landlord. And that relationship is going to be built on positive interactions. Which means the current landlord probably has things fixed, driveways plowed on time, water leaks dealt with immediately and general maintenance up to date.
Thus the "gut" feeling side of RE investing in MFH.