Multi Family Real Estate Investing For Beginners: Part 2 (Advanced Lesson)

Multi Family Real Estate Investing For Beginners: Part 2 (Advanced Lesson)

Investing in multi family buildings can be one of the safest assets for your money – and it should be no surprise that real estate investing creates more millionaires than ANY other business (multi family buildings specifically). But why should you invest in multi family buildings as opposed to the more common strategy of single family homes?

Investing in single family homes is without a doubt easier. The tenant quality is MUCH higher, it’s simpler to understand as we can all relate to a residential home, and it’s much more forgiving. If you happen to make a mistake on one of your properties, it’s unlikely that you’ll lose your shirt (and everything else you own!).

The game is played at a much smaller level – especially financially.

Now it’s not to say that investing in single family real estate is useless, far from it! These properties should definitely be a part of your portfolio as well!

They are your bread and butter.

Something you can rely on almost every month as the tenant quality is so much higher (caveat: that is if you’re investing in the right areas).

I personally own many single family rental properties, and I always will. As I said, they’re extremely reliable.

But the REAL money is made in multi family buildings, and that’s because it’s based purely business!
Multi Family Buildings Are Built On Fundamentals

The positive of investing in multi family buildings is that you’re working with other sophisticated investor’s (properties with 6 units or more, and especially 20 units+) who also bought on fundamentals.

Remember, multi family buildings are primarily valued based off of how much income the property generates – period!

Comparables and building condition/upgrades do play a part in valuation but it really comes down to income. For example, let’s say a 15 unit building is valued at $1,500,000 in Kitchener and it’s NET OPERATING income (rental income minus all expenses – not including mortgage payments) is $65,000 a year.

This would mean that the seller is valuing their property based on a 4.3% cap rate.

But let’s say that because you’re an expert (or because you’re working with an expert real estate agent that specializes with investors – that’s me!), that they know this building is in a “B class area” in Kitchener and the condition of the building would also place is it as a “B class”. Which means the cap rate should be 6% at most (every city AND neighborhood will have they’re own Cap Rates. Expert realtors know this!).

This means that you have to calculate your offer as such – $65,000 (net operating income) DIVIDE 0.06 = $1,083,333.33

This means that the MOST you’re willing to pay is $1,083,333.33

Remember, commercial lenders (6 units or more) DO NOT CARE that the seller wants 1.5M. And they DON’T CARE if you’re willing to pay 1.5M – all their lending you money on is based on a value of $1,083,333.33 – PERIOD!

#MultiFamily #RealEstate #Investing

Get Access To “Unlimited Cash” –

Get Access To The ENTIRE “Fruitful Investing Academy” Course Catalogue –

Want A 1-on-1 coaching call with Mat? Book it here –

Follow Mat On Instagram:


Your 2019 Cryptocurrency Investing Guide – Invest Diva

Your 2019 Cryptocurrency Investing Guide – Invest Diva

Find out more here:

You might be super tired of waiting for that “bottom” all crypto analysts keep promising. But even in the most bearish crypto markets, there’s still money to be made.

Kiana Danial, CEO of Invest Diva, and author of Cryptocurrency Investing for Dummies reviews how to manage your portfolio in 2019.


how to trade stock option. with investing hustler

how to trade stock option. with investing hustler

Join my stock membership group . LINK

how to trade stock option. with investing hustler

Departures Capital

Investing Hustler

Amazon affiliated LINK
The Warren Buffett Way book

All stock recommendations and comments are the opinion of writer.

Investors should be cautious about any and all stock recommendations and should consider the source of any advice on stock selection. Various factors, including personal ownership, may influence or factor into a stock analysis or opinion.

All investors are advised to conduct their own independent research into individual stocks before making a purchase decision. In addition, investors are advised that past stock performance is not indicative of future price action.






FIFA 19 Ultimate Team, FIFA 19, FUTMAS



Why Invest? (Investing Basics 1/3)

Why Invest? (Investing Basics 1/3)

In this video, you’ll learn why it’s important to invest, not just save your money! We also go over everything from inflation to stocks, bonds, and dividends.

Investment account recommendations:

Next video:

More of a text based learner? See the transcripts and citations here:

Please leave us any feedback here: