Mutli Family Investment Returns

[Alejandro Antonio Taylor JR]

Hey guys,

Just had a question on multi family real estate investments. I’m just starting in the investment process and trying to gain more knowledge.

In a good investment, what’s the typical rate of returns in monthly cash flow and rate of return once you decide to sell a Multifamily property?

Also, if you invest in a property with other investors what is the typical divide of the cash flow between each investor and the break down of the profit each investor gets once you decide to sell? Do you divide it all depending on how much each person invested initially?

Thanks in advance guys.

[Carnet Williams]

@Alejandro Antonio Taylor JR I'm just starting out myself and have 8 doors. My recent close in Dec was a fourplex in MO primarily for passive income (no rehab needed). With current rents I am at 10.5% Cash on Cash (75% LTV) and once stabilized in the next six months will be at 14.5%. I aim for 15% cash on cash and do not start below 10% with the goal to get to 15% within 12 months at the latest. Hope that helps, but would love to hear other thoughts. As for selling, it depends if you are a buy and hold or if you are looking to BRRRR. I find with closing expenses, minor cosmetic rehab, and selling costs it doesn't make sense to sell prior to 4 years (assuming 3% appreciation) and then do a 1031.