@Account Closed - Where are you thinking? I am on long island and I can tell you prices and taxes are pretty high here. I'm sure to could probably find something but would be hard to make the numbers work I think.
@Account Closed - Where are you thinking? I am on long island and I can tell you prices and taxes are pretty high here. I'm sure to could probably find something but would be hard to make the numbers work I think.
@Account Closed. I'm not far from there. How many units? I haven't purchaed any MF yet but I do suggest making sure you get the financials from the seller and verify the rent rolls and expenses to make sure the numbers work
I'm glad to hear you are getting into the MFR space! I know a few investor up in the New York area and they have all started looking mainly down south and some midwest as cap rates have compressed significantly in this area and simply do not cashflow unless you get an amazing deal from a motivated seller. As others have mentioned, just make sure you get the financials (trailing 12/ rent rolls) to make sure it makes sense and cashflows from day 1. I've built a financial model (example on my website) that I help investors all the time with underwriting any kind of deal, so let me know if I can be of any assistance along your journey. I hope this helps and Best of Luck!!!
@Account Closed for less then 5 units i would look at comps for recent sales in the area as well as the avg rent in the area. The biggest expenses are going to be the mortgage and the taxes. BP has a calculator that would calculate your cash flow and returns. Go tools and select rental property calculator.
Thanks Curtis. Will do. Any suggestions on which calculations (formulas) I should get myself familar with?
I would start off by determining your NOI and Cashflow are very important calculation when dealing with MFR. When choosing a market I would recommend looking at job/population growth, job divesification, landlord/business friendly and a rising market. Anything else I can help with let me know!