Your #1 Income Property Resource.

 No Money Down Real Estate Investing Course
Learn How To Buy Income Properties Without Risk, Good
Credit, Money Or Tenants!

Click here for more information

 Welcome to! Visit the Real Estate Investing Forums.

Real Estate Articles 
 Real Estate 
 Second Home
 Success Stories
 Real Estate Q & A
 Real Estate News
 Real Estate Law & Policy
 Money Making Ideas
 Home Improvements
 Tax and Insurance
 Appraisal and Inspection
 Log Homes
 Mobile Homes
 Home Buyers
 Constructions and Home Buildings
 Real Estate Investing 
 Vacation Home
 Rental Property
 Preconstruction Investment
 Marketing Secret
 Joint Venture
 Land Investment
 Lease Purchase
 Probate Real Estate
 Real Estate Clubs
 Short Sales
 No Money Down Investing
 Fixer Uppers
 Resort Home
 Loft Apartment
 Property Development
 Tax Incentives
 Investing Strategy & Tips
 Real Estate Wholesale Property
 How To Articles
 Subject To
 Real Estate Books
 Apartment Investing
 Commercial Real Estate
 Residential Property
 Hotels and REITs
 1031 Tax Deferred Exchange
 Investment Property
 Real Estate Advanced Techniques
 Trust Deed Investments
 Creative Home Buying
 Wholesale Real Estate
 Real Estate Auctions
 Tax Lien Certificate
 HUD Homes
 Real Estate Regional USA
 Austin, Texas
 Colorado Springs
 Reno, NV
 Market Analysis
 Property Management
 Condo Conversion
 real estate guru
 Bank Foreclosure
 VA Homes
 Buy To Let
 Rent to Own
 Tax Deed
 Stop Foreclosure
 Retirement Planning
 Real Estate Investors
 International Real Estate
 United Kingdom
 Real Estate Seminars
 Condo Hotel Investments
 NNN Properties
 real estate notes
 Real Estate Education
 REO Properties
 Life Estate
 Income Properties
 Mortgage and Finance 
 Mortgage Leads Generation
 Mortgage Leads - Leads Mortgage
 Mortgage Marketing
 Creative RE Financing
 Hard Money Lender
 Debt Consolidation
 Income Property Financing
 Home Equity
 Credit Repair
 Mortgage Tools
 Home Construction Loan
 Commercial Loans
 Owner Finance
 Private Lenders
 Discounted Notes
 Assumable Mortgages
 Seller Financing
 Equity Lines of Credit
 Real Estate Pros 
 Real Estate Agent and Broker
 Mortgage Agent and Broker
 Real Estate Marketing
 Real Estate Consultant
 Real Estate Resources 
 Mortgage Foreclosure Example
 Mortgage Origination forms
 Property Transfers
 Tenancy Agreement and Form
 Internet and Online

Real Estate Investing : Investment Property Last Updated: Oct 7th, 2014 - 17:01:03

Multi-Family Property Investing

Email this article
 Printer friendly page

Many of the people were investing in single-family properties, but I’d seen an interview on television with a guy named Harry Helmsley from New York.

A lot of people know Leona Helmsly. She was known as the “Queen of Mean”. But Harry Helmsley was a multi-millionaire real estate investor in his own right.

Harry talked in this interview about starting out buying and selling multi-family properties. He ended up owning the Empire State Building.

During the program, the interviewer said, “Harry, what is it about multi-family properties that got you going?” Harry said, “I always like the idea that a group of people would pool their money together and give it to me so I could pay off the mortgage on one of my buildings.”

In essence, the tenants are buying the buildings for us!

Harry said, “I always liked the idea that the same group of people would pool their money together and give it to me so I could pay for all the maintenance on my property too, so I could sell it for top dollar. They’d give me so much money that, at the end of the month, I would have cash flow, money I could either reinvest, put into a savings account, or perhaps just go out and have some fun with.”

Well that did it for me. Right then and there, Harry Helmsley got me hooked on multi-family properties. I thought to myself, “I’m going to go out and I’m going to attract as many of those people as I can find. I’m going to have them pay off as many buildings as I can, and let them give me as much cash flow as they want to.” Sure, some people start with single-family properties. There’s nothing wrong with that. You should always start where you’re comfortable. But remember this: The road to wealth is paved with multi-family properties.

You can make money buying and selling single-family properties. But if you want to be truly wealthy investing in real estate, eventually you’re going to get to multi-families. Why not just take the shortcut and start with them? That’s what I did.

The multi-family property investing is valued differently from single-family properties. With single-family properties, we use what’s called the “comparable method” and we compare like-kind properties to each other rot determine their value.

With multi-family properties, we use the “Income approach” or the “capitalization rate”. That rate is simply the return that you expect to get on your investment. The way we figure out that capitalization rate can be a little bit confusing. So I took a complicated formula and I broke it down to a simple formula which I call the “Times 10 Valuation Calculation”.

This is what you do: You take the yearly income, and you subtract the yearly expenses not including mortgage. Yearly income minus yearly expenses equals your net operating income, or “NOI”.

You’ll hear this a lot in multi-family investing: NOI, net operating income. If you take that NOI and multiply it by ten that give you the approximate value of the property. This is a very basic formula you can use over and over with multi-family properties to quickly figure out value. For example, the Property:

Income $34,000 Minus Expenses $15,300 = Net Operating Income (NOI) of $18,700

So the value of the property in very rough terms is 10 times the NOI.

If you pay $140,000 for the property, you will profit $47,000 on that property.

The best news is that there are deals like this in every down in America.

Excerpt of Massive Passive Income Creator – by David Lindahl


Do you own real estate articles or stories and want to share with other investors? 
You have chance to win
$100 Amazon Gift Certificates. We will give away 3 prizes for top authors each month!

Email your articles or stories to:


© Copyright 2001 - 2010 by            Page copy protected against web site content infringement by Copyscape   



Visit Real Estate Forums for every real estate investing topics!  Enter Here


Top of Page

Home Courses Real Estate Forms Income Properties For Sale Forums CalculatorReal Estate Education    

Copyright © 2001 - 2010, All Rights Reserved. Privacy Policy in Observance.