Real Estate Deal Analysis & Advice

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Rob Widdick
  • New to Real Estate
  • New Hampshire
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Does this seem like a solid deal?

Rob Widdick
  • New to Real Estate
  • New Hampshire
Posted Jan 20 2022, 09:59

Hi there,

I've been a fellow lurker of BP for a while. My wife and I have been doing quite a bit of studying, including reading a couple of books from BP members.

So we started looking for multifamily properties as we have money to invest, and have put in a few offers that we ultimately lost (as we all know, the market is super hot). We tend to be losing offers to cash buyers, which is frustrating. But nonetheless, we're still looking and actively putting in offers.

We put together an analysis using real numbers (mortgage, pmi, expenses) and it seems like too good of a deal to be true, if we get accepted that is. We're only able to do 5% down on pretty much any property in the 500s+ range, and we plan on doing owner-occupy. 

https://www.biggerpockets.com/... is the analysis... what are your thoughts? This is double the average cap that we've been seeing, with a really good CoC return and it checks off the boxes for the 1% rule and 50% rule with cash to spare.

We plan on creating a WY holding LLC as partnership for anonymity, and each property having its own LLC as a disregarded entity for tax purposes.

Should we plan for anything else or just hope like hell we get accepted? Also worth noting, the sellers price was 489k... we're offering a bit over. I didn't want to over do it, even with the seemingly strong returns, and we felt that this was a good balance.

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