Is this a good deal?

[Bailey Mason]

Hello BP! 

I'm ready to submit an offer on my first investment property and would really appreciate some second opinions! The deal is 2 duplexes next to each other asking 58900 each, 4 units total.  2 are leased at 525 and 550/month currently. We're also considering owner occupancy. Any thoughts are greatly appreciated! Thanks!

[Daniel Walski]

Try making yourself a pro forma (projected) P&L for the first year or two, and then calculate ROI (net income / equity).

Looks like monthly revenue is $2,150, now try and estimate your monthly costs:

-Insurance

-Taxes

-Interest

-Utilities

Seems like a great deal, but people can only analyze so much with such limited info. The deal becomes less attractive if LTV is less than 80%.