Cash Flow Goals For Multifamily Investing

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Cash Flow Goals For Multifamily Investing

Kyle Labelle
Member since 2019 · 1 post · 3 votes

Hello, I am new to Biggerpockets and just started looking into REI. I am currently trying to consume as much information as I can get my hands onto. I am planning on house hacking my way into REI and plan on purchasing a multifamily home in 12-15 months as I continue to save and learn.

The question that I have is in regards to cash flow goals: For those investing in multifamily homes, what number are you looking for, per unit, to justify considering that property? I am planning on looking for homes in the South Shore, particularly Bristol and Plymouth counties.

Thanks in advance for any feedback!

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Jonathan BombaciBusiness Member
Real Estate Agent · Lowell, MA · Member since 2019 · 1k+ posts · 1k+ votes
7y

Hi Kyle to agree with Charlie and Jesse. Every area will be different and you’ll need to educate yourself on the areas your interested in buying so you can set your expectations accordingly. It’s also going to be different if you’re planning to househack a duplex, triplex, or Quadplex. Duplex might be great personal investment while you’re living there someone is paying part of your mortgage, but with a 4plex you should be able to live for free or get paid to live there. 

With all that being said I’m buying large multi families (7-16 units) in northern NH and I won’t touch anything that won’t net $150 a door within the first 2 years. 

Do some research, attend some local meetups, and develop your own criteria for your first househack. That criteria will inevitably change over time as you go from your first deal to your 10th and that’s to be expected. 

[email protected]978-710-8611
Candor Realty4.760 Reviews
WebsiteView Page
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  • Charlie MacPherson
    China, ME · Member since 2014 · 3k+ posts · 4k+ votes
    7y

    @Kyle Labelle Welcome to the South Shore! The MFR market here is a lot more affordable than inside RT 128. The areas you should research include Plymouth, Kingston, Pembroke, Marshfield, the west side of Brockton (roughly defined by zip code 02301) and Middleboro. On the South Coast, Fall River and New Bedford are both even more affordable - but research the crime in each. There are some sketchy areas in there according to the crime heat maps on Trulia and ADT.

    In general, the further you are from Boston, the lower prices are.

    MFRs here are very competitive for that reason.  Once you're ready with funding lined up, you should be ready to pounce the moment a target property hits the market - and I mean you should plan on a visit within 24 hours.  Anything like a good deal will be gone very quickly.

    Good luck!

    2Reply
  • Jesse Os
    Ludlow, MA · Member since 2018 · 21 posts · 2 votes
    7y

    Kyle, it really depends on your goals. I would recommend visiting local REI groups and talking to people to get a better idea. The WesternMass REI, Inc group is great! Just google them and link up through the Facebook page. I have learned a ton from the people there so far.

    They are also hosting a conference this October that would be perfect for you. Check it out at 

    https://nereisummit.com/

    1Reply
  • Jonathan BombaciBusiness Member
    Real Estate Agent · Lowell, MA · Member since 2019 · 1k+ posts · 1k+ votes
    7y

    Hi Kyle to agree with Charlie and Jesse. Every area will be different and you’ll need to educate yourself on the areas your interested in buying so you can set your expectations accordingly. It’s also going to be different if you’re planning to househack a duplex, triplex, or Quadplex. Duplex might be great personal investment while you’re living there someone is paying part of your mortgage, but with a 4plex you should be able to live for free or get paid to live there. 

    With all that being said I’m buying large multi families (7-16 units) in northern NH and I won’t touch anything that won’t net $150 a door within the first 2 years. 

    Do some research, attend some local meetups, and develop your own criteria for your first househack. That criteria will inevitably change over time as you go from your first deal to your 10th and that’s to be expected. 

    [email protected]978-710-8611
    Candor Realty4.760 Reviews
    WebsiteView Page
    3Reply
  • Josue Velney
    Developer · Boston, MA · Member since 2016 · 175 posts · 155 votes
    7y

    Hi Kyle, I am happy you are asking the right questions and getting different opinions. Once you complete you research you should sit down and figure out your goals. I noticed you have been receiving great advice from the other comments. I would like to add no matter what the number per door you decide on make sure you leave room for property managing even if you decided to self manage. I will see you at the top my friend.

    1Reply
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