Multifamily Investing
Review operating and acquisition considerations.
Open ResourceSample Buy-and-hold case study
Boston Triple-Decker Rental Analysis
A fully occupied three-family property produces strong rent but does not comfortably cover the proposed debt.
Educational sample—not an actual transaction.All property details, people, figures, and outcomes are hypothetical.
Sample assumptions
Property and Financing
| Purchase price | $1,050,000 |
|---|---|
| Loan | $787,500 at 7.00%, 30 years |
| Cash invested | $287,500 |
| Monthly scheduled rent | $9,000 |
Modeled results
Financial Analysis
| Annual rent | $108,000 |
|---|---|
| Vacancy | $5,400 |
| Operating expenses | $44,400 |
| NOI | $58,200 |
| Debt service | $62,868 |
| Annual cash flow | –$4,668 |
| DSCR | 0.93x |
| Cap rate | 5.54% |
Risk review
What to Examine
Verify legal unit and bedroom count.
Include taxes, insurance, utilities, management, maintenance, and reserves.
The modeled NOI does not fully cover debt service.
Test a lower price, more equity, or documented lawful value creation.
Primary lesson
High rent does not guarantee positive cash flow. The asking price should be renegotiated or rejected.
Replace every sample assumption with property-specific evidence. Test conservative income, expenses, construction, financing, timing, and exit scenarios before committing funds.
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Guides and Tools for This Case Study
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Three-Family Homes
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Open ResourceRental Cash Flow Calculator
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Structure rental-property due diligence.
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