5 unit - cap rate or cash flow per door?

[Brianne Leichliter]

I ran some pretty solid numbers on a 5 unit that I am preapproved for.

My question is should I be focused more on the cap rate for a 5 unit since it is technically commercial, or stay focused on the cash flow per door similar to a 4 unit?

[Michael Ablan]

@Brianne Leichliter - For appraisal and offer purposes, use cap rate.  For meeting your own investment criteria, use cashflow per door.  I won't look at anything unless the cash flow per door is $350+ or if it has the potential to be that after rehab or management changes.