3 Simple Steps to Evaluate Any Multifamily Investment in 5 Minutes

Are you interested in investing in multifamily properties? Do you want to be able to evaluate potential deals quickly and efficiently? Discover 3 simple steps to evaluating any multifamily investment. With this method, you will be equipped with the knowledge you need to make informed decisions about pursuing any multifamily deal. Learn more here:

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0:00 Importance of Multifamily Metrics and a Decision-Making Framework
1:18 Deal Assumptions: Estimating Expenses and Default Mortgage Terms
3:10 Questions? Text PETER to 833-942-4516
3:20 3 Simple Steps to Evaluating Multifamily
4:07 Step 1: Gather Property Information - Gross Rental Income, Effective Gross Income, Operating Expenses, NOI, Annual Debt Service
7:20 Step 2: Calculate Multifamily Metrics - Cash Flow, Cash on Cash Return, Deal Cap Rate
9:03 Step 3: Decision Framework - "Go or No Go" Standards
12:10 Summary of 3 Simple Steps to Evaluating Multifamily

[theviewer]

You’re the best on commercial real estate education

[kennethmartin]

This was a good breakdown on how to evaluate multi family properties. Highly informative blueprint! I appreciate your knowledge 💯

[dotunogunwale]

35% for expenses is extremely hard to find. I’ve done 2000 authentic underwriting on deals in the last 2yrs and I’ve not seen 35% expense yet, the lowest I’ve seen was 44.7%

Now that Mr. Peter said it, I’m 1000% motivated to look for one, thanks for the motivation

[GoddessTemple]

Ty for this video! Super simple and informative! I subscribed to your channel because I love you guys!!!! ❤️♥️❤️♥️

[hmj]

As soon as I saw that the asking price was $1 million and you were collecting $1, 000 per unit on a 12 unit building I knew this was going to be a 'go'. This feel like a property in a C class area. I'm sure there's a easy to make spreadsheet that helps do this even quicker, and that spreadsheet could be used to help turn a no-go deal into a go by making changes to what you are willing to pay. Every deal's a potentially good deal at a certain price point.

[jb]

Thank You! for your Kindness and Big Heart

[be.amazingkelly]

Great info, thank you and done in less than 5

[joanne]

Thank you very much Mr. Harris you wrote the note for teaching others on the board - this reminds me when I was learning best in my high school time wow it’s so awesome to learn & understand. Following to learn more 😃👍💕

[kennethmartin]

Excellent video!!! Thank you for this information 💯!!!

[jesuspaiditall]

Great video, and thank you very much!

[andrewcohen]

Thank you great I learned alot from your videos.

[ElLeNoir..ELconomics]

Hey mr.harris always good to watch the videos you've done over the years I learned a lot from them in the crei

[gv]

Great video! Clear, precise & to the point! For the COCR calculation, if the building is a value add I'm assuming we'd add deferred maintenance or CAPEX in with the down payment?

[loulupero]

Great great information Peter. Thank you! Do you offer template run numbers?

[Kris-kuxr]

This is awesome! I'm analyzing my first multiunit for purchase and this is very helpful. New sub here

[rpietryk]

These are best easy to understand loose info

[albertlubin]

Love your videos. Is it fair to assume the 35% rule for Opex does not include Property mgmt cost and reserves for repair and capital expenditures? With Prop Mgmt (i.e.10%) and these reserves, would you agree that the baseline would then be closer to 60%?

[dwightmonteith]

When you’re calculating cash on cash return do you include closing cost as money invested? In the example you have the down payment

[musabboouf]

Can you include everything under operating costs?

Also how to estimate hoa fees?

[familyh]

How do you break down the 750k at 6.5% to get the monthly payments?