Multifamily investing Tip #entrepreneur #tips #shorts #short #shortsvideo #shortvideo

18 Dec 2024 · 1 min

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Short YouTube advice from Steve D Valentine on evaluating multifamily (small multifamily/fourplex) investments by analyzing cost and rent on a per-door basis. He uses a personal example: buying a fourplex for $400,000 ($100,000 per door) with about $1,400 rent per door, and warns that many expenses remain per-unit (AC, appliances, water heaters), so compare per-door costs to single-family homes or condos before buying.

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You've got a lot of competition out there in the multifamily. And multifamily is really important that you look at it as a per door cost, right? So if you break down a fourplex, and I'll give you a great example, because I own one fourplex in Sunny Slope, if I break down that per door, I paid $400,000. So I paid 100,000 per door on that deal. That one cash flows extremely well because I paid $100,000 for a door and I think we're getting $1,400 per door in rent. Keep this in mind when you start breaking down multifamily. Remember, you might have four units, but the only expenses you're saving is just on the size, right? I still have four AC units, I still have four dishwashers, I have four refrigerators, I have four water heaters. I have all the same things that are in a single family home. The only difference is the size. So you have to be really cautious on what you're paying per door and then calculate that against a single family or a condo and do the breakdown per door and see what you get.