Deal Analysis Help!
Hello BP-ers, relatively new to this whole RE thing and I am trying to make sure I am analyzing deals the way experienced investors do!
I have an example of a property located in Cleveland, Ohio (Specifically Lakewood) and would appreciate some feedback on my analysis and where I can improve.
property https://www.realtor.com/realestateandhomes-detail/...
This is a duplex, and my goal here was to find the purchase price that would yield a Cash-on-cash ROI of at least 10%.
I have attached a picture of my analysis:
Assumptions made during analysis: closing costs: 3.5%, pre-rent holding costs: 2 months worth of income, pre-rent repair cost: 10,000, repair monthly expense: 5% (IF THESE ASSUMPTIONS ARE ILL-ADVISED PLEASE LET ME KNOW!)
Ultimately I am looking for an experienced investors analysis to answer the questions seen at the below:
1. what price would you pay to achieve a 10% COCROI?
2. Based on a purchase price of 77k, how close is my NOI and CapRate?
3. How far off would you say I am in pre-rent repair cost?
4. other tips for a newbie!
Please help, this would be largely appreciated!
Chris Zeh