Rental Property Investor · Exeter, CA · Member since 2017 · 4 posts · 1 vote
hey BP I found a deal that consists of 2 units property , one unit 3/1 and 2/1, I use the four square method for analyzing rental properties, the 2 homes are rented and collected $1550a month, with a $1319 total monthly expenses, and a cash flow of $231 a month ($2272 total annual cash flow) , my total investment will be $34K with a COCR of 7.92% is this a good deal?
Rental Property Investor · Clermont, FL · Member since 2016 · 266 posts · 81 votes
8y
Hey @Edgar Bustos there are a LOT more criteria to consider to know if it will truly be a good deal or not. What are the terms? Are you borrowing money? Doing all cash? What is your cost of money if you are borrowing? Also are you getting the property below market value? If so, how far below?
Hopefully we'll be able to provide some better insight and help you more contextually with this additional info.
Investor / Real Estate Agent · Oklahoma City, OK · Member since 2015 · 324 posts · 157 votes
8y
@Edgar Bustos I would mimic what @Brandon Reed said. Then would like to add, are you accounting for Property Management, CAPEX, management and vacancies? I know you said you are using the 4 square method however some people have different interpretations.