All Forum Posts by: Michael Kissel

thanks.  That is good to know.  After I ran the numbers, for the first year was only $1300 cash flow before taxes and cash on cash return 2.9%.  

Now I believe the rents are low and can be increased.  So i ran a scenario based on that and these numbers improve to $2760 cash flow before taxes and 6% cash on cash return.

Even for a good condition property in a good area, should I expect higher numbers than this or not really?

I'm brand new to this as well but you need to run the numbers on an apod form or the calculator on this website.  I looked at a property Saturday that seemed great and I was excited.  But after I ran the numbers, it was not so good.  I could of made a huge mistake and so glad I took a step back and ran the financials.  You can also use the 50% rule of something quick.  Lots of info on this website for how to do that as well

thanks for the replies.  At the moment the plan is to not live in one of the units.  I didn't ask about seller finance so glad for the reminder that might be a possibility in some cases.

Anyway, after I ran the numbers using an APOD form and the calculator here, its not worth it at the current asking price.  In fact, the asking price appears to be way out of line.  I think I got a little too excited because it was in very good shape in a very good area. Oh well, I guess that's why you run the numbers.

Looking for my 1st property and found a great 3 unit yesterday.  Done the analysis and return and cash flow is there but the asking price is $180K. Very little work would need to be done to the property.  With 20% down and closing costs, that means approx. $45K out of pocket initially.  that worries me as it would be several years to get that back.  is that normal?  Is there anyone in the Buffalo, NY area I could talk to about financing so initial out of pocket would be less?  

So I just went through a pre-approval process, have an excellent credit rating and am pre-approved for $200K.  However, the institution used said they require a 25% down payment for any investment properties.  I have been hearing 20% was the requirement.  Is 25% common or should I be working with another institution?

Hi all,

I am in the Buffalo, NY area and have just started the process of looking for my first multifamily investment property. I'm excited but nervous at the same time. But realize if I learn as much as I can and do my due diligence and take time to find the right property, it can be great. I hope this is the beginning to an early retirement! (especially since the stock market is eroding my 401K at the moment).