Analyzing Multi Family Real Estate Deals

[Account Closed]

Hello everyone , I'm an investor in the houston area and I am looking into building a multi family real estate portfolio. I am wanting to know a simple yet accurate way to analyze the financials of a property . I understand it takes time to get accurate numbers because you are sort of at the mercy of the seller , but I am wanting a formula , system or any kind of way to make this process go a bit smoother. 

[Michael Pittman]

Short answer:
Cap rate, NOI (net operating income), asking price.
A good analysis gets much more in depth than this. But that is what you need to know on Day 1. You need to know exit strategy as well. If you have no exit strategy then you certainly have no entry strategy. Learn about cash on cash returns. Learn the difference between levered vs unlevered returns. This is good for using NPV and IRR cash flow analysis calculations. Investopedia and PropertyMetrics should become your best friends.