[Calc Review] Help me analyze this deal

4 Replies

@Aaron Carter , it's not unusual for new builds to be terrible candidates for investors, is it? 

Looks to me like it would be marketed mainly to owner-occupiers, who won't mind the negative cash flow, because its ongoing cost is less per month than if they were to buy a new SFR instead.

What doesn't look right about the report? Welcome to BP...

@Brent Coombs thank you so much for taking the time to look at it. I think it looks as though the investment cash flows. I do not plan on occupying the property. I was trying to use "worst case" numbers and be fairly conservative. I wanted to see if I was accounting properly or if I was missing something.

@Aaron Carter , a couple of points: 1. If you intend on managing the property yourself, be assured that you'll work for the cash flow you get because of that. ie. It's possible you'd only get a monthly return because you took on managing it, part time! ie. You're supposed to include Property Management as another expense, even if it's you who are getting that (~10%) "pay".

2. Are you sure that Insurance on a new build investment triplex will only cost $86/m?

I got the quote from USAA. Im also hoping Ill be able to secure a better rate of around 4.65% which will really help the the property cash flow. Thank you again for looking at this and giving feedback. The real big question for me is will it rent for what I think it should......