[Calc Review] Help me analyze this deal
*This link comes directly from our calculators, based on information input by the member who posted.
New to investing and want to get feedback on this report I did. This is a duplex in Philly with a 1 bed 1 bath unit and a 3 bed 2 bath unit. According to my research, rent in this market for the 1 bed would run anywhere from 1000-1300 and the 3/2 would run about 1800, which nets a pretty crazy cash flow. What do you guys think?
Tanner,
Saw your post, thought it would be fun to underwrite your deal with our Addres Income Investor Tools. There are obviously multiple things I don't know about the property...don't even know the address.
Any feedback on our tools would be appreciated. We wonder if these would be helpful to larger portions of the investor community.
Thanks,
Hi Tanner,
Based on your analysis, I'm assuming this is a turn-key property (meaning you buy this place and can rent it out the next day, or if it's already rented, then do your due diligence on their lease and rent roll) and the cashflow looks very solid. If it's not turn key then you need to figure out the rehab cost. If you are new, whatever the cost you come up with, just double that and that would be your realistic cost.
The only thing I couldn't check is your operating cost and anticipated capital expenses because I have no idea about the property. Also to be conservative and if you are hiring a PM, I would put somewhere between 12-15% on PM cost. Most PM I know charge a tenant placement fee that's equivalent to 50-100% of first month rent. So that would put you on top of 10% unless you can negotiate a 8% management fee.
If it's this good, I would also ask the seller/agent, how long they've owned it and why they are selling it. What are their major pain point of owning this property. Sometimes you get a lie and sometimes you get a straight honest answer but it's another opportunity to shake the tree a little and collect a data point.
If everything checks out at this point, and it's in a location where you want to invest in. Make an offer and get it under contract and start the real due diligence. Keep us posted on how it goes.
Hi Tanner,
I'm an investment real estate agent in the Philly area. Depending on where you are in the city and the condition of the units, the cash flow can vary. I would love to connect with you to help you analysis this deal more!
Tanner, I have a feeling I know that property you are refering to. If I am correct this is the Pine rd duplex. 3bed 2 bath would rent for 1800 up to 2000 depending on how much renovation there is. And the one bed would rent for $1300 if fully renovated. As an agent/investor I'd be happy to help you run those numbers and analyze deals in the Phila area. Feel free to reach out anytime
