# [Calc Review] Help me analyze this deal

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

I am trying to put together an argument to sell this property and buy a multi-family.  We originally lived in the property for 4 years and it has been a rental for the last 4 years. We purchased in 2010 with 3.5% down(FHA)/\$265k sales price and refinanced 4 years later right before we changed to a rental with a 4.25%/ 30 year loan/\$250k. It is not cash flowing at all and that is why I would like to get rid of it. We could sell for \$425k

I am just not sure how to put this through the calculator to get an accurate report.

Not sure if the calculator on BP is designed to do a comparison analysis you are trying to perform.

Would the property sell for \$425K or \$325K? So you bought the place 8 yrs ago. I'm assuming your rent and expenses on the report are based on actual. Assuming \$325k, your property has appreciated about 2.6% per year on average. considering you only put in 3% of the purchase price, that's an OUTSTANDING return (That's a whopping 30% annualized return). The appropriate comparison here is 1) how much equity do you have in the house (appx 65k i assume?) 2) if you took that equity amount (minus sales closing cost), how much can you get, 3) how much can you get return on duplex you can buy from the remaining amount. IF your property continues do appreciate at 2.6% per year on average, and you cashflow -\$50 per month, your return on equity is about 12% (which is NOT a bad return, and this doesn't include repayment of your principle). If the duplex you buy can generate more than 12% return, then yes, by all means you should go for duplex. Btw, when you do this, you have to make sure to do like-kind exchange, or else you will be taxed on the gain so you'll have to make WAY more than 12% return on the duplex. Hope that helps.

@Michinori Kaneko thank you for all the analysis. The property will sell for \$415-425k. The realtor I am talking to wants to list at \$415k to start a bidding war. We owe \$228 on the mortgage. Purchased 2010 for \$265k, refinanced loan amount \$250k 2014. The is rather small, 2bedroom 1 bath so not sure if the value will increase at the same rate as it has.