Rule Of Thumb On CF / Unit

I would love to hear from some of the more seasoned investors here as to what minimum CF per Unit you guys look for when determining when a deal is right and what the max offer is that you are willing to pay.

Specifically I would like to know the CF range in the following categories:
1. 2 - 4 Units
2. 6 - 12 Units
3. 14 - 20 Units
4. 20 - 100 Units
5 100+ Units

Thanks in advance!

Comments(3)

  • commercialking13th August, 2005

    Are you talking about Cash Flow before or after debt? Before or after operating expenses?

    Multi-unit buildings usually trade baded on Cap rates rather than this kind of figure, that may be why your question is not attracting attention.

    There are lots of articles, topics around here on Cap rates.

  • InvestorPaul20th August, 2005

    Sure no problem. Were you looking to buy in So. Cal?

  • MultiFam21st August, 2005

    Actually, I am looking in your neck of the wood - DFW area. Specifically I would like to pick up a 10 - 20 unit Type B or C with a nice CF... I mean CAP rate.

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