Why now, why Multi-Family?

This week isn't even over yet, and it has already had historical sugnificance. With the financial industry turning upside down, the stock market dropping an historical 777+ points on Monday, paired with the fact that the House has proven to be a laughable bunch.

"How safe is your money?" seems to be the host qote across the board when watching any news program.

According one FDIC report (http://www.fdic.gov/about/comein/files/foreclosure_statistics.pdf), more that 1-200 homes will be foreclosed apon.

These people have to go somewhere, and they aren't going to be qualifieing for a home loan anytime soon. So it is a very good bet that they are going to be seeking qualified rental housing.

 Where would you feel more safe investing your money, in the highly unstable financial market, or a property that can provide an instant profit? 

Lets just say that you purchase a 200 unit class A property, with a cap rate of 7%. You pay $6,315,000 for the property, that means that you have a NET income of $442,050 a year. And in most cases (as long as you keep the occupancy rate up, and maintain the property well) the property value will continue to rise.

 If you have the ability to hold the property for 5 years, that should net you about $2,210,250. Take that way from what you have in the property, which is the $6,315,000, that leaves you with $4,104,750. Even if you sell for 10% less than you paid for the property (which is more likely to be 4% more than you paid for the property) That should still leave you with somewhere in the neighborhood of $1,578,750 in net profit after the sale. Minus my commission ofcourse..haha..