Updated over 4 years ago on . Most recent reply
Small multifamily advice
Hey biggerpockets. Seasoned single family home investor here for about a decade with a decent number of single family rentals. I am considering jumping into small multi family. Have a couple potential deals on the hook but needing advice. The one I am closest on is a 4 unit in a rapidly growing town with under market rents in prime location. The potential purchase is 350k with current rents at $3340/month. This is very low as I own multiple homes in this town and get significantly more. My conservative estimates put me at 4,000-4500/month rents. Currently expenses are high because the owner pays all utilities except electric and gas. Current monthly expenses are approximately $1,000 obviously without a mortgage. I would likely do a mortgage on this property which is new I have usually always bought cash so a bit different for me here. I do not know multi family rules of thumb, etc. and would love small multi owners input and it would be greatly appreciated!! Thanks in advance.