New... Need help with calculators 9 duplex deal
Hi i am new to bigger pockets and real estate investing trying to learn as much as possible. I am currently working on my first flip looking to have it done in August.
My question is with the calculators i have been using them to run numbers but i want to make sure i am entering in the correct numbers and making sure i am analyzing deals correctly. Here is a 9 duplex (18 unit) 3.4M deal that i ran the numbers on. The numbers show a high negative cash flow. I want to make sure this is correct.
Also i see some people are using 20% down and some say you need to put 30% down can someone explain to me why they are recommending 30% down.
https://www.biggerpockets.com/buy_and_hold_results/1123850.pdf?c=1560388484
Most Popular Reply
Hi @Benjamin Mercier, my browser wouldn't pull up the spreadsheet, but offhand $3.4 million for 18 units seems pretty steep, hence the negative cash flow you saw (granted prices are area dependent). I'll try to pull the sheet up when I'm home later. Also since it's 18 units you'll need to work commercial financing which will require a higher down payment (typically 25-30%). Anything over four units will be valued as a commercial property.
Cheers,
Brian