[Calc Review] Help me analyze this deal

4 Replies

Considering this as a First deal in my area.  The estate has multiple properties they are letting go of (off-market)and I can likely get a better price if I pick up more than one at a time. Both properties I am considering are triplex.

All the info plugged in came directly from the existing owners Pro-Forma statement. I maintained a 5% vacancy although the property hasn't had a vacancy in some years.

At this price the owner would also dig up the existing Fuel tank and replace it with a new above ground tank.

View report

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

@Tom Kentop Jr The numbers look pretty solid to me. Do they meet your minimum criteria? I usually look for CapEx + Repairs to total 15% compared to the 12% you show. This would add a little more conservatism to the numbers.

Out of curiosity, how big are the units? Where are you located? These numbers (both purchase price and rent amounts) are much different than what I see in NH.

@Jeff Barnard   Rents are currently $1075/750/600 for a 2bd/1bd/1bd(relatively small).

Considering heat/water/garbage are currently included they could all get bumped a bit and still be competitive.

They are in a small community in Ulster County, about 1.5 hrs north of NYC.

What are the expense assumptions you entered in the calculator?  This would include property tax (now based on what you paid for the house, not present property taxes), annual maintenance expenses, reserves for capital expenses such as a new roof or new driveway, insurance, etc.  Until understanding those numbers, it's really not possible to comment on whether the deal would make a good investment or not.

Also, what can you share about the area?  

@Ken P.

The assumptions are made based on existing data from the existing property manager/owner files plus my own numbers from my insurance broker and town office.. Includes: Tax,Insurance, water/sewer,electric,Fuel, repairs/maintenance(including mowing/plowing), CapX, PM, garbage,vacancy as listed in the document.

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