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Updated over 6 years ago on . Most recent reply

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James Monaghan
  • Houston TX
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Average Profit Per Unit- $100 per month?

James Monaghan
  • Houston TX
Posted

Is there such a thing as average profit per unit for Multi Family? 

I see some variations, however the median range seems to be around $100 per unit per month.

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Michaela G.
  • Investor
  • Atlanta, GA
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Michaela G.
  • Investor
  • Atlanta, GA
Replied

Seems really low. I only have duplexes, so, not really MF on a big scale. And I wouldn't touch a duplex with $ 100 potential profit per side. 

Also, it depends on how you calculate. $ 100 - after what deduction?

Keep in mind that banks/mortgage companies only count 75% of your rental income for you to qualify for another mortgage. So, if your cost of the unit is $ 900 and your rent is $ 1000 and you consider the difference your profit ......the bank will only count $ 750 as rental income. So, with such a low margin it would be difficult to get future financing. 

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