Renter · Corvallis, OR · Member since 2015 · 24 posts · 0 votes
Hello, I was wondering if someone could analyze this deal for me. It would be my first deal and I am an out of state buyer. I have run the numbers twice and they look good to me. Can you shed just let me know if you think it is a good deal too? Give me your numbers. Thanks.
Insurance seems a little high, you might want to shop around.
Did you budget tenant placements fees into management fees? Or do they just charge you the 10%?
5.3k vacancy and maintenance is a bit low, I would budget at least 1000 per unit and 1000 for common area repair and maintenance, and a 8-10% vacancy rate.
How about landscaping, snow removal? If you hire someone you might want to budget in 80 bucks a month. The common area should probably be cleaned at least every 2 weeks, probably 25-40 bucks. If you have a tenant do it they would probably want a reduction in rent, which will need to be budgeted.
- Appreciation rate of property and rent increase rate both equal inflation
-At sale, 6% realtor fees + $1000.00 in other fees (probably not enough)
Results (assuming you hold for 5+ Years):
-Cash Flow: ~$4600/yr
-IRR: 13%
These aren't terrible numbers, but they're not amazing either. If you're a first time investor (and I say this as no pro by any means), is there a particular reason you're drawn to a deal that isn't local?
Dan, thank for your the clean breakdown. I really appreciate it. Your numbers were close to mine. The reason I am looking for properties outside my area is because I live in the most expensive city in the state and the inventory here is extremely low.
I am a big fan of Grant Cardone and I agree with him when he says your just have to do it! I want to retire early with investment rentals but I won't ever be able too if I don't start. If someone can so me a better deal for that price or less, please enlighten me