Analyzing bigger multi family deals!

[Chaits J.]

Hi BP,

My business partner & I ventured into REI last year and bought 4 condo's in last 1 year. Since we were just starting out we gave importance to safe deals compared to higher cash flow. All condo's are in good neighbourhoods with average cash on cash returns. Now that we gained little experience we are thinking of moving into Multi Family territory(10-15 units).

We have a great investor friendly realtor helping us out finding properties in areas that we are interested in. My question to all experts here is, How do you analyze a Multifamily deal ? What are important factors that we should be looking at ? What kind of due diligence is needed ?

In this extremely competitive North East market, we have realized that it's very difficult to bag great to good deals. So we want to replicate the same strategy that we followed with condo's. Average cash on cash investment return(minimum of 6-8%), gain equity year on year..etc. Basically do not want to end  up doing a dumb deal..:-) 

Any reference to other posts or podcasts will be a great help.

Thanks,
C