Investing in small multifamily

2 Replies

Im just starting in investing in small multi family. I have 2 Quads Im looking at. Can anyone tell me what info is most important in doing due diligence. ALSO what kind of cash flow should I be looking for to determine if its a good deal?

Hi George,

Here is a sample Due Diligence checklist from Michael Becker:

That is like a "wish list" of best case scenario for larger multifamily properties so some of those requested items on the list may not be applicable.  

As far as cash flow goes, that comes down to your personal goals and risk tolerances. Some people want $200/unit for cash flow after conservative underwriting, others are ok with $100/door. Some people will look at the property from an ROI perspective and want a certain percentage return. So, I believe it makes sense for you to ask yourself: "What are my goals?" and "What kind of returns am I looking for in order to achieve those goals?"