Updated almost 8 years ago on . Most recent reply
Thoughts on numbers
Hey. Just about to pull the trigger on a purchase in Florida, north of Fort Myers south of Tampa.
It’s a duplex with 30%down for mortgage reasons.
The numbers still work. But certainly not a home run. Just a base hit I feel. Mind you this is the first time at bat in the majors.
Purchase 220k, monthly income 1850, monthly expenses 1441, purchase cap rate 6.61%, cash on cash 6.66%. Cash flow 408/mo
I’m figuring this isn’t bad as a getting in the game starting point. Thoughts?
Most Popular Reply
Joe Villeneuve
#5 All Forums Contributor
Pro Member
#5 All Forums Contributor
- Plymouth, MI
CoCR way too low for me. First time out, or last time out, it doesn't matter. They all have the same criteria, and they all have the same impact. Saying "it's the first time out" to make a deal you wouldn't have done 5 "times" from now, is just a rationalization to make this deal sound good.
Also, I really hope the "30% down for mortgage reasons" doesn't mean you had to put more money down to get your cash flow higher...or worse, to turn negative CF into positive CF.