Thought I was going to finish 2020 empty handed, tough real estate market out here.

Managed to snag a great deal at the last minute and wanted to share the details.

Here’s how I analyze multifamily real estate investment opportunities 👇

The property was a vacant 4plex, listed for $990k & after a few back and forths, the sellers accepted $950k with no finance condition.

Sellers were an elderly couple who neglected the property, it needed a lot of work. It was in a great neighbourhood/location.

(more pics later)

I first calculated my total equity investment required to acquire and stabilize the property.

During the inspection, did a full walk through with a trusted contractor (worked with for years), receiving quotes unit-by-unit.

Estimated time to complete = 4-6 months.

Next is the stabilized P&L.

Since I know the area very well, I can estimate rents and opex with great accuracy (I have another property within 15 mins walking distance).

Tenants are responsible for hydro/gas.

Finally, I put together the key metrics in evaluating the deal.

I look for yield above 15%, cash on cash above 7% and debt service above 1.5.

As you can see, the numbers check out.