Updated over 3 years ago on . Most recent reply
New Investor in Wisconsin-Duplex cash flow $250 deal or no deal?
New investor looking to get a duplex. I have been looking for about 8 months. Just starting to get a better understanding of how to analyze deals with the help of the Bigger pockets rental calculator.
I have read that in this current market if you get a property to cash flow for $100 per unit that is the norm. Also, watching the webinars I understand that 90% of deals are not deals.
Most of the properties I have seen are ancient, built around 1900. Maintenance and lack of insulation for a property of this age scares me, but these seem to cash flow better.
I have come across a duplex that is built in 1955, all brick, but if my numbers are correct, it will only cash flow for about $250 total per month. Using only 5% maintenance, 5% vacancy, 10% CapEx, 8% management, plus additional for insurance.
When analyzing a deal should I be looking beyond the cash flow????
Thank you in advance, this community is of investors are wonderful.