Analyzing deals for first investment

2 Replies

Hello BP! Was wondering if you think a duplex or 2 unit multi with 2br/2ba selling for around $115,000 to $120,000 and each unit renting for $950 is a decent deal? I’ve run the numbers with a conservative capex and repair budget and I’m ending up at around 10-11%. Property is turnkey or very minimal repairs. Taxes are around $2350. May sound crazy but I really feel I can get a better %. I would also pay cash. Thanks

Have you analyzed using the four square method?  What are comparable rents?  Is the area up and coming?  Is it cash flow positive now?  There are a lot of factors in your question.  

@Adam Wertz using your numbers 10% coc = $12000 net. finance $96000 = $5496 PI yearly.  $12000 - $5496 = $6504. net. $6504 / $24000 down payment = $27.1 % return on cash. The object of rentals is to have the tenant pay down your mortgage.  So for the same dollar amount you can buy 5 more houses less closing cost. The power in real estate is leverage. Just think you will get all your money out of the property in 4 years.