comparing to the 1% rule to SFH....

the 1% rule everyone knows, I was first to introduce it to TZLC, rent / 1% = purchase price,  simple.

but in the multi-family world, I use 1.6, it assured a CAP 8 return under normal operation, so if rent is 800, 800/1.6% which then gives us the purchase price around 50-60k range per door.

but yes the market has changed since 10 years ago, you simply will not find anything or find anyone going to sell you multifamily complexes at that price.

so in recent transactions, I am more focused on performa CAP, what will the future market bring me in 12 months, if I can meet CAP 8 after value add, I still consider its a good deal.

 

 

 

所有跟帖： 

• 在一年之内就把 cap 提高到8%，难度比较大。 -圭妈- ♀ (0 bytes) () 01/13/2022 postreply 19:39:00

• 多谢老大答疑解惑！ -wait..- ♀ (149 bytes) () 01/13/2022 postreply 20:30:56