Can you help me analyze this duplex in Stockton - CA?

4 Replies

@Paul Palo , so, you don't mind it costing you more money every month (on top of your $60k deposit), so long as you think that its IRR will outpace those losses in the long term?

Good luck with that.

[Are you sure you can get a 30yr fixed investment loan at 4.25%?]

And my guess is: it's market value, right? ie. Not really a "deal".

Also, I suggest: don't assume its exit cap would be higher than at entry. My 2c...

Originally posted by @Brent Coombs :

@Paul Palo, so, you don't mind it costing you more money every month (on top of your $60k deposit), so long as you think that its IRR will outpace those losses in the long term?

Good luck with that.

[Are you sure you can get a 30yr fixed investment loan at 4.25%?]

And my guess is: it's market value, right? ie. Not really a "deal".

Also, I suggest: don't assume its exit cap would be higher than at entry. My 2c...

Sorry can you explain "you don't mind it costing you more money every month ..."

@Paul Palo

Is this deal currently on the MLS? Didn't find anything listed at that purchase price (was trying to get more information so I could check your numbers). Feel free to PM me the address, I won't share.

At $299k with 25% down and a 5% interest rate (typical for investor loans on multifamily, but you may beat it) your monthly PITI will be $1602. So if you think you can get $2,700 gross per month that should give you plenty of room for cash flow after property management and utilities. Plus that puts the 1% score at 0.9% which is well above average for Stockton so I'd say this is a deal as long as the neighborhood is good.

Send me a PM with more info and I can give you a better analysis.

Originally posted by @Paul Palo :
Originally posted by @Brent Coombs:

@Paul Palo, so, you don't mind it costing you more money every month (on top of your $60k deposit), so long as you think that its IRR will outpace those losses in the long term?

Good luck with that.

[Are you sure you can get a 30yr fixed investment loan at 4.25%?]

And my guess is: it's market value, right? ie. Not really a "deal".

Also, I suggest: don't assume its exit cap would be higher than at entry. My 2c...

Sorry can you explain "you don't mind it costing you more money every month ..."

Let's just say that your "Other assumptions" needs to include more expenses than just Taxes and Insurance. eg. Have you included: Vacancy allowance; Maintenance costs; Capital expenditures; and Property Management costs, somewhere?

And please, check with Lenders to see what your investment Interest Rate will actually be!...