My potential first investment deal.
MULTIPLE FAMILY ANALYSIS
Hello BiggerP, I am about to purchase my first home, so I have been trying to analyze a deal. I have been using the research I found on BiggerPockets and I am confident that my analysis is right. So I figured that I would post my findings up in hopes that the Biggerpockets council could provide me some prospective.
TOTAL LOAN AMOUNT $30 K (FROM A FAMILY MEMBER)
PROPERTY INFO:
Current value: $41,500
Vacancy rate: 10%
Renovation: $8,000
Property tax: $950 (YEARLY)
Insurance: $1,000(estimate) (YEARLY)
Rent per unit: $650-$725 (MONTHLY)
Purchase price: $27,000 (cash purchase LOAN FROM FAMILY MEMEBER)
NOI = $12,600
Income - Expenses = $15,600 - $3000 yearly
CASH FLOW = $6,600
Noi - Debt = $12,600 - $6,000
$275 per door
One thing that has been troubling me is how to take this research and figure out the cap rate.