Need help with a deal

3 Replies

You should double check your math on the cap rate. Do the math base on an individual unit. $240K / 3 units is $80K per unit. Each unit rents for $900. $10,800 gross per unit per year minus 40% for expenses equals $6,480 per year. Divide that by $80K price and that give you about an 8% cap rate. If that is a good deal in your market, buy it. If it isn't a good deal, adjust your offer.