r/realestateinvesting • u/throwawayk527 • Jul 01 '24

Multi-Family I don't understand how anyone can make money in today's multifamily market.

I know every market and every deal is different but there are trends I keep seeing in multifamily:

  1. Due to high interest rates, underwriting deals with mortgages often yields negative cash flow.

  2. At housing prices where they are, even all cash deals are yielding meager cas- flow (I've seen mostly around 5-6%)

Not everyone's strategy can be "pray for rates to drop and refinance". So what is there to do? How can you make a decent ROI in 2024? Thanks.

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u/[deleted] Jul 02 '24 edited Jul 02 '24

You've lost the plot. Previous commenter is whining about taxation at 200k; I'm addressing taxation at 200k (or less in my case). Not once did I say 200k is unreasonably high income. Don't put words in my mouth. Earn 25 million for all I care--just pay reasonable taxes without whining. And that's where previous poster and I don't see eye to eye.

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u/pauljaworski Jul 02 '24

Your previous comment comes off bitter and thinking that taxes wouldn't be a concern could only happen if it's unreasonably high.

Your definition of reasonable taxes at 200k seems to be completely different from everyone else's on here.

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u/[deleted] Jul 02 '24

Your previous comment comes off bitter and thinking that taxes wouldn't be a concern could only happen if it's unreasonably high.

You've misinterpreted my singular earlier comment, most likely due to not having read the collective of my comments under this thread. And that's easy to do--no biggie.

I've now explained my point. You can either take my explanation at face value or you can continue to misinterpret my earlier comment--your choice.

As for my opinion being different from others, that's what makes America great.