All Forum Posts by: MARK F.

Thanks for Reply Nathan.

Let's assume for discussion purposes that the lender issues the loan secured w/ personal assets.

I read somewhere that once an investor throws out seller/broker supplied financial statements (which I've read are often inaccurate) and gets down to the actual financial figures, positive cash flow deals are extremely difficult to find.

I threw in some of my own variables (small building, value-added property) because this is my target acquisition category.

I still would like to find out, how realistic is it for a investor looking for his first (small approx. 8 -32 unit) multifamily acquisition to hold out for a positive cash-flow deal.

Greetings!

I am seeking the knowledge and experience of seasoned Multi Family Investors.

Investing in Multi Family Buildings has been a dream of mine for several years. A few months ago I graduated from dreaming to educating myself. Now I’ve moved onto the next logical step of drafting a business plan, which I am currently in the process of.

Here’s my question:

What is the reality of finding a small, value added multi-family building with a positive cash flow given current market conditions?

* Assume financing with a standard LTV and a competitive market rate on a commercial mortgage.

* By small multi-family I mean approximately 8 – 32 units.

* By Value Added I mean the property’s value would be increased from relatively minor improvements, increases in management efficiency and/or increases in occupancy.

* For the scope of this question please eliminate considerations of the investors personal time and efforts that could be allocated elsewhere to generate income.