Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago on . Most recent reply

User Stats

15
Posts
6
Votes
Ryan Mattson
  • Berkeley, CA
6
Votes |
15
Posts

Is This a Good Deal?

Ryan Mattson
  • Berkeley, CA
Posted

Hi Everyone, I'm currently working with my father who is trying to close on his first real estate deal. He is not the most financially savvy and I've found myself in a make-shift financial adviser sort of position, but I feel this would be a good opportunity for me to learn the business and benefit him as well. Anyway, after much delay and shopping, we finally have our financing in place and can make an offer if a good opportunity arises. So here's my question: Is this a good deal?

Duplex and detached Studio Unit - Total of 3 Units - currently priced at $170k

Following information provided by my realtor:

Total gross rent: $1,800

Annual Income $19400 (Buyer to verify)
Annual Expense $4500 (Buyer to verify)
Income (before mortgage expense) $14,900 (Buyer to verify)


Tenant Pays All Utilities, Water, Sewer
Income Includes Unit Rent
(Expenses Include Management, Maintenance/Repair, Insurance, Taxes, Vacancy Factor) - According to seller

Our lender wants us to put down 25% - Around $43k

Mortgage payment would be around $700, bringing our net income to around $6,500 

If I'm correct this would be a cash ROI of around 15%?

At first glance these numbers seem solid, but there is also some factors that are discouraging as a potential investor. 

#1: The listing only has one photo of the property. All units are currently occupied, but still... 1 photo.

#2: The listing has been up since August 2017 - Any and all potential buyers walked off after inspection?

As a virgin investor, I would really appreciate any and all feedback!

Thanks!

Loading replies...