Deal Analysis Help - newbie!
I found a quadplex for $300,000. Rent is $3080, so it meets the 1% rule. I would put 20% down for 30 years, so it would cash flow about $288/mo by the 50% rule (less than the ideal $100/door). But it was built in 1998 and is in pretty good condition, I don't think repairs will be excessive.
The thing is, when I enter it in the Bigger Pockets rental property calculator, I can make it look great or I can make it look awful by adjusting the %s for capex, repairs, and vacancy. At 5% vacancy, 5% capex ($154/mo), 5% repairs ($154/mo), no property mgmt, the return is over 6% and cash flow is good. But increase the capex and repairs from 5% to 10% and it goes negative.
I just don't know if I'm overanalyzing this, it meets the 1% rule, it's a nice property in a good area. Should I wait for a better deal? I could purchase two turnkey properties for the same amount that would cash flow a similar amount, according to the turnkey company of course. And I think the turnkey SFRs would be easier to sell in an exit strategy scenario and would be more likely to appreciate.