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Updated about 9 years ago on . Most recent reply

User Stats

34
Posts
8
Votes
Michael` Cluer
  • Investor
  • Harrison, AR
8
Votes |
34
Posts

Help me analyze this 4 duplex purchase

Michael` Cluer
  • Investor
  • Harrison, AR
Posted

Hello, I am a young new investor that has been messing with nightly rentals. This purchase will be my first buy and hold, as I have been wanting to BRRR for my investment strategy to get where I want to be in 2 years. I came across this deal and made an offer that I believe will be accepted so let me know what you think. It is 4 duplexes with 7 of the units occupied (2 with 7 and 9 year tenants) and the eighth needing some cosmetics. All tenants are MTM at this point which is good for me because the rent is at 400-425 per door, whereas my PM says that I could easily get 550 per door. I have decided to run the analysis at the current rent and have room for growth on the next turns. I have got taxes and insurance from actual numbers, along with estimates on expense and management fees from my PM. Cash-flow will be a little less because I will using a LOC for the down payment out of some land of mine, the calculator didnt have a 0%DP option. The area is blue collar suburban with an accredited school and low crime rate.

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