[Calc Review] Help me analyze this deal

4 Replies

New to the Pro-Version although BP got me my first deal 4 years ago - then I fell asleep ... Well, NOW I am awake again and looking to retire in 7 years or sooner when I make it happen ...

Any advice/thoughts on this one would be appreciated.

Regards,

Ken

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*This link comes directly from our calculators, based on information input by the member who posted.

I think your closing cost are way too low, probably be aroud $6k, and are repairs accurate?  if so seems like an ok deal to me.

Howdy @Kenneth Rieder

Your numbers are really borderline for me. Since it is 2 Duplexes located on 2 different streets I would want to know the numbers for each individually. That's ARV, , number of bedrooms, rents, expenses (including any utilities), conditions and estimated repairs costs, etc ...

Why?  Because they could be vastly different.  One in good condition and one not.  They say both are currently rented.  Were they recently vacant?  5% for Vacancy is too low until you establish a history for yourself.  Why did you title the report as a 4-Plex when it really is 2 Duplexes on separate streets?  Look at the 50% Rule Cash Flow.  I use it as a filtering tool.  You should know there are more expenses than what you list on these reports.

Not enough information for me to say thumbs up or down yet.  

No one can tell you what is a "good" deal, especially when you haven't given any context. It's awesome that you want to retire in less than 7 years, but what do you need in order to do that? Cash flow? How much? Equity? Cash? 

Only you can tell if this is a good deal, and if you don't know, I would suggest you pull back and better define your retirement goals, which will influence your investing goals, which will determine your buying criteria. It's fine to ask for advice, but you have to put yourself in a position where you are confident when you see a good deal. If you have to take the time to think about it for more than a day, a truly good deal will be swiped up by an investor who innately knows a bargain when they see one.