cash on cash return percentages for multi-family investments

What are the typical cash on cash return percentages for multi-family investments?
thank you!
In Buying Property - Asked by lara n. - Dec 30, 2011
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Answer(s)

Tom C.
Owner/Investor
Kennebunk, ME

If you are investing for immediate positive cash flow, a C/C Return in the 9-12% range should put you in the right area. If you are looking for a property that will provide its value sometime in the future through appreciation, then a slightly lower C/C % may suit your criteria.

Dec 30, 2011
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Mark U.
Owner/Investor
Rochester, NY

I wouldn't bite anything lower than 25% cash on cash. In this market you can easily find that or above. I personally closed several last year that are over 30% cash on cash, and will be closing one this month that is even higher! It is a buyers market, get out there and look!

Jan 1, 2012
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marc j.
Broker/Agent
Boca Raton, FL

If you are a typical investor who wants to purchase a property that will be easy to manage, you should expect to see a 7-10% cap rate on a total cash investment. However, if you use leverage to purchase the property, your cash on cash return percentage will probably be be higher, but your total cash return (the amount of money you actually take in) will be lower.
Marc Jablon
RE/MAX Complete Solutions
561-213-6139
jablonteam@gmail.com

Jan 2, 2012
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Philip E.
Broker/Agent
Dedham, MA

From a residential investor perspective here’s what I’m seeing in my market for year 1 cash on cash:
Cap Rate range: 6% - 9%
# of Units: <5 (residential)
Down Payment: 25%
Market: metro Boston
Philip
MatchOne Real Estate
781-964-6034
Philip@MatchOneRE.com

Jan 12, 2012
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Sean T.
Owner/Investor
Utica, MI

I would have to agree with the answer above from "Mark U", with the current market conditions there are just too many opportunities to settle for single or low teen returns. In my market (Detroit) we see the highest returns of any of our properties, with our Multi Family (2-6 family) Purchases . The yields are high enough where we are able to offer fully cash flowing properties for sale at 20 cap and make a profit on the sale, which is saying quite a bit. Hope this helps!
Sean Tissue
Sean@renovatingdetroit.com
1.586.808.3325

Mar 6, 2012
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