How much can I expect to pay for a 200 unit apartment complex? I understand that it depends on the market you are investing in but does anyone have a rough estimate? And how much would you expect in cash flow per year after making payments on the loan? Brand new to real estate and just looking at possibilities of investment goals many years down the road.
Investor · Santa Barbara, CA · Member since 2016 · 75 posts · 35 votes
8y
multi family investing books are a great place to start (really excellent resources available through BP press). Price is really determined through NOI and is can be adjusted by different factors..
Rental Property Investor · Tampa, FL · Member since 2015 · 1k+ posts · 969 votes
8y
I recommend thinking about this differently. Rather than asking "how much can I expect to pay for a 200 unit apartment complex," ask yourself "how much capital am a capable of accessing?" This can be your own money or passive investor money. Once you know how much capital you can raise, you can calculate how much real estate you can buy. For example, if you can raise/have access to $1 million, you can buy real estate up to ~ $3.3 million (expect to pay 35% of the purchase price).
In regards to cash flow, that depends on your goals. Determine what ongoing return you want and find the best strategy that aligns with that goal.