Palm Beach County Multifamily

5 Replies

South Florida / Palm Beach County  Multifamily Investors - What are you buying?, Where are you buying? What kind of returns are you getting? What are you seeing in the market? Or are you buying out of state or sitting on the sidelines until things cool off?

I have about $100,000 to invest and I've been searching for a small to mid sized value add multifamily investment (4 - 10 units) but it seems like the deals are very hard to come by. There's a few properties for sale in the Lake Worth Area that have OK returns but I'm hesitant to invest there...


Has anyone landed a deal locally lately?

Jim Hiler, Developer in Florida (#CGC1523624)

@Jim Hiler This is a great post. I am looking for the Multifamily properties as well. Everything that I see sells very fast and at full ask. I'm looking in Coral Springs, Lake Worth and areas a bit south. I'll keep you posted if I see anything. 

Rafael Brown, Real Estate Agent

I'm also looking anywhere in Palm Beach County from Boca up to Jupiter but it's hard to find anything that makes sense. Will be starting some of my own marketing within the next few months to try and source some off-market deals. It's definitely more of a flippers market right now. Cash flow seems very tough to find for both SFH's and MFR's.

Hello everyone. I am a newbie (pre-investor) looking to purchase my first multi family in the tri-county area. Can anyone explain to me what specific numbers you analyze or what returns you look for in order to determine if a multi-family deal is a good purchase in our hot market?

@Monique Webb , first, welcome to RE investing.

Second, there is A LOT to learn. Are you asking about residential multi (up to 4 units) or commercial (5 or more units)? Figuring out which one of those classes you are targeting will determine a lot in regards to financing options, down payments, etc. 

As for analyzing numbers, you're going to want to familiarize yourself with CoC (cash on cash), CAP rate and NOI (Net Operating Income).

As for what return to look for, that depends on the market you're looking to invest in. Also, what you want as a return may not be what another investor wants so to answer that question, you have to ask yourself, "how much money each month will be enough compensation for dealing with each tenant?" Is it $100 per month per tenant? Is it $300? $500?

@Russell Gronsky - Thank you so much for your reply. 
Currently I am looking at a small multi (up to 4 units) and was hoping to acquire a loan with a low down payment.
I have familiarized myself with the numbers you mentioned (COC, NOI and CAP), now I just have to figure out what I think would be good benchmarks for me. 

Do you have any suggestions on where I should look for a low down, possibly FHA loan for a small multi?

Thanks again!



Originally posted by @Russell Gronsky:

@Monique Webb, first, welcome to RE investing.

Second, there is A LOT to learn. Are you asking about residential multi (up to 4 units) or commercial (5 or more units)? Figuring out which one of those classes you are targeting will determine a lot in regards to financing options, down payments, etc. 

As for analyzing numbers, you're going to want to familiarize yourself with CoC (cash on cash), CAP rate and NOI (Net Operating Income).

As for what return to look for, that depends on the market you're looking to invest in. Also, what you want as a return may not be what another investor wants so to answer that question, you have to ask yourself, "how much money each month will be enough compensation for dealing with each tenant?" Is it $100 per month per tenant? Is it $300? $500?

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