[Calc Review] Help me analyze this deal

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Ok, I'm trying to understand better this deal. I recognize it doesnt have huge margins in it but I don't know how to hit 2% in pierce county and especially on a property that has a great desirable location. Could you help me know how to look at this better?

I tend to look for at least 1% deals in pierce and thurston counties. Assuming these numbers are correct, this looks like a decent deal to me. I just purchased a 1.25% deal in Yelm and am happy with how it is performing so far. My personal target is at least $125/door per month. 

Howdy @Bob Faulk

You are going to find it difficult to achieve 2% for Income-Expense Ratio on a BRRRR deal. The primary objective with this strategy is to recover all (or most) of your cash investment to use on the next deal. The secondary goal is to meet a minimum Cash Flow criteria. You meet the first using the numbers you are using. However, I question the optimistic numbers used for expenses in your Cash Flow analysis. Do you have experience in the area with rental properties to justify the low numbers? If not it is always best to stay conservative when analyzing deals. Depending on the type of property and the market the 50% Rule is usually fairly close for expenses.

How accurate is your ARV? You might think about Flipping the property versus BRRRR.

Sorry, I have to go.  Would make some more observations.

@Bob Faulk I have not. I am currently looking at a unique deal in Thurston County that should be at least a 1.33% deal before raising rents on a 9 unit. If you are trying to find closer to 2% you'd likely need to look in the Grays Harbor market, however I would be cautious when buying in areas of GH with the low economic growth and lower tenant base. 

@John Leavelle Thanks John, I literally just put a couple numbers in that were low because I've completely made the property new from the roof all the way to the exterior siding, paint, unit 1 & 2 now have new carpet, cabinets, granite counter tops and tile flooring. All new 6 panel doors etc. I took the rents from $900 month to $1350 and think I will try to get $1395 on my next 2 units. I realize my monthly expenses I put in were low.

hey Bob- I like the numbers, but my concerns would be on the repairs at $100/mo and capex at $100/mo. I'd probably do that amount for a sfr or maybe a duplex - but this looks a tad bigger. That said - it's got the room, it just might lower your ROI some if you put something like $200 each /mo.

Also - double check that taxes won’t increase when you buy the property. Good work! Let’s us know what you end up doing! 

and don’t be too worried about Grays Harbor. But I think it does take localized knowledge to know where to buy and where to avoid. 

@Brandon Turner Thanks Brandon. I mostly put them in that low because I just finished the rehab on the whole building literally all new. I also was mostly trying to figure out how to hit the 2% here locally on the building next door that the owner is open so selling. It's identical to mine with a few improvements already complete. I do know there's a number that will make that property work I was mostly trying to figure that out on something I'm familiar with. Thanks for the encouragement on greys harbor. I realize I'd need to spend some time figuring that market out but it's only 2 hours from my home and the prices are much smaller there so it's an area I'm wanting to check out. I flew to milwaukee and spent 2 days looking over that market and it's got huge opportunities. I'm very new at real estate and have beginner experience but I am getting in and at least figuring out what I don't know as I do rather than trying to figure out everything in theory. Thank you again for reading my post and your time. Your a good man. God bless and I look forward to being on your podcast one day!!