Breakeven point for a small multifamily (Duplex-4plex)

[Wei Jie Yang]

Question about buying Multifamily properties. Is there a general rule of thumb in regards to breakeven points when it comes to small multifamilies (Duplex-Quadplex)?  Something like I a Quadplex is only a good deal if 50% occupancy gives me a breakeven operating number. Or avoid Quadplexes if I can't make a profit unless it's 100% occupied. 

Do such guidelines and rule of thumb exists?

[Oleg Shalumov]

@Wei Jie Yang there is something called 1% rule (when the rent is 1% of the purchase price). The higher the rent compared to the purchase price - the better is the deal. 

If 50% occupancy gives you break even, it is a good deal. 

I hope this helps,