Learning how to analyze
Hey guys, I am learning to analyze deals in the market for the time I am ready to invest. I have found a property I'd possibly like to invest in of I had the money so I want to hear what you guys think.
Located in Rochester, NY.
Purchase price: $112k
Down Pay @ 25%: $28k
Loan: $ 84k @ 4.5 % 625.61
Operating Expenses: $1048.34
Insurance est: $83.33
Tax: $116.67
Vacancy: included GSI
Property management ~ 10%: $151.67
Total expenses + Debt Service: $2025.28
Monthly Income: $2565
Monthly Cash Flow: $539.72
CF per unit: $134.93
While this is good I'd like to see $200 per unit so I tried a purchase price of 85K
Purchase price: $85000
Down Pay @ 25%: $21,250
Loan: $ 63,750 @ 4.5 % $494.89
Operating Expenses: $1048.34
Insurance est: $83.33
Tax: $88.54
Vacancy: included GSI
Property management ~ 10%: $151.67
Total expenses + Debt Service: $1866.77
Monthly Income: $2565
Monthly Cash Flow: $698.23
CF per unit: $174.56
If I was able to purchase this @ 85k it would put me closer to the $200 mark, this is my first deal analysis so I could have a lot wrong, but what looks good and what looks bad about the deal?