[Calc Review] Help me analyze this deal
*This link comes directly from our calculators, based on information input by the member who posted.
Quote from @Nathan Mcnabb:
*This link comes directly from our calculators, based on information input by the member who posted.
Getting ready to close on my fist rental deal and would like to get others opinion as I'm very green in this and don't really have a mentor per say to ask for advice. I've read the books and listened to the podcast for the last 3 or 4 years and been looking for the perfect deal, but I think its time to jump in and get my feet wet. It is a 4 unit side by side apartment building. Each unit has 2 bed 1 1/2 bath, garage parking and off street parking. I paid to have a building inspection done and everything checks out great. Would guess it to be in a B neighborhood. New roof less than 5 years old. fully rented out. My wife is freaking out about the down payment money but I keep assuring her that we will make it back in a few years plus all the tax advantages we can use. What's everyone's opinion on my report? seem like a decent deal considering the times?
Any advice for a novice is greatly appreciated!
Congratulations looks like you scored! The only thing I would do is self-manage the property.
Quote from @Walter Pineda:Thanks that's the plan. Any advice on software?
Congratulations looks like you scored! The only thing I would do is self-manage the property.
Dude sorry, I meant I would not self-manage the property. We have 3 out of state rentals managed by a property management that I'm not pleased with. I couldn't manage our properties if I wanted too. So don't take my advice I'm a rookie.
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#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
Appears you are using 5% estimates for vacancy and maintenance.
Why?
You stated this is probably Class B - do you know nonpayment performance of Class B tenants? Why wouldn't you include nonpayment est with vacancy?
Also, how is maintenance impacted by property Class? Typically, Class B tenants are harder on their Class B buildings compared to Class A situation. Class C is worse than A or B.
So, why only 5% for maintenance?
Quote from @Drew Sygit:
Appears you are using 5% estimates for vacancy and maintenance.
Why?
You stated this is probably Class B - do you know nonpayment performance of Class B tenants? Why wouldn't you include nonpayment est with vacancy?
Also, how is maintenance impacted by property Class? Typically, Class B tenants are harder on their Class B buildings compared to Class A situation. Class C is worse than A or B.
So, why only 5% for maintenance?
I looked online somewhere and found that area was 5%? Would you recommend something different? I'm all ears. One Tennant has been there 5 years , one for 3 years other 2 for 1 year.
and I just used a recommendation on 5% for maintenance. Do you think it should be higher or lower? Thanks for the help
Quote from @Drew Sygit:
Appears you are using 5% estimates for vacancy and maintenance.
Why?
You stated this is probably Class B - do you know nonpayment performance of Class B tenants? Why wouldn't you include nonpayment est with vacancy?
Also, how is maintenance impacted by property Class? Typically, Class B tenants are harder on their Class B buildings compared to Class A situation. Class C is worse than A or B.
So, why only 5% for maintenance?
?