Updated over 3 years ago on . Most recent reply

Cash Flow Analysis from Investor Perspective.
I'm selling an investor/ clients Duplex in Atlanta that is currently rented Section 8 for a total of $3600 ($1800 each side). The property has some tenant damage but it is not what I would consider a rehab. Condition is "fair" I have run comparative market analysis to come up with a value based on recently sold in the area. I would like to know how an investor would analyze this property form a cash flow POV. I have MY method, but I would love to hear others...
PITI (20% down at 6% interest) > $3600
Thanks in advance!
- Micah Lynell Mortag
- 8505432787
Most Popular Reply

GROSS INCOME minus PITI, Vacancy, Maintenance, Management, Utilities, Reserves = cashflow.
since your piti is already more than the gross income there's not much to analyze from a cashflow POV. The deal won't work for a cashflow focused investor.
You will need to lean into the appreciation potential of the asset and future development in the area.
good luck!
- Victor Steffen
- Podcast Guest on Show #790