Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
Hey folks,
A triplex came on the MLS today piqued my interest, so I decided to analyze it. Then I thought... maybe I should record my thoughts out loud to share with the BiggerPockets audience. Maybe that'll help folks?
So... I did :)
Enjoy! (And if you like the video, be sure to click to go to the actual YouTube page and give it a "Thumbs Up" on the YouTube player!)
(click the gear on the bottom right corner to change the video quality settings to HD)
What do you think? Would you buy it? What price would make it "awesome" to you?
Ok, I really like your analysis and I am very new to this so this might be the wrong way of looking at a deal but I feel like the cash on cash return view could be improved upon. The two things not considered in the analysis of cash on cash are the tax write offs for expenses and interest paid as well as the additional "savings account" generated by having someone else paying off your house for you/building that equity. When I factor those into the equation even an 8% return on a rental property looks far better than a stock market investment because stocks require capital gains tax upon selling and don't have nearly the same tax benefits. (I have traded stocks for many years to moderate success and am just dabbling in real estate so any input would be very helpful).
Actually seeing the process and listening to your thoughts as they are occurring was so valuable. Written articles are great, but they don’t deliver that meaty insight that you get with a “live” walkthrough like this. Thanks for sharing!
It's a good starter tool, but the one thing you have to watch out for is your expenses in years 2-10 This could be a new roof, windows, washer etc. This will kill your rate of return. That's why I like commercial NNN better as these expenses are covered by the tenant.
The positive on this particular deal is possibly doing something with that extra lot.