Realtor · Cape Girardeau MO · Member since 2016 · 14 posts · 1 vote
8y
Just at a quick glance I see that you are not assuming that the value of the RE, expenses, or cash flow will go up at all over time, was this your plan or a typo?
Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
8y
@Daniel Danyus, is the ARV really expected to be less than your acquisition and rehab costs? If so, that's a problem, right there! If you're paying market value (or more) - "no deal"!
Also, as has already been pointed out, 5% is not conservative enough to cover both maintenance and cap ex. I also don't reckon 5% vacancy is conservative enough. And, are those Taxes and Insurance quotes correct for a fourplex of that value? (Generic calculators would reckon you were asking about an SFR). Lastly, are you sure about your loan length and interest? My 2c...