[Calc Review] Help me analyze this deal First analysis ever!!

4 Replies

View report Hey Bigger Pockets fam,

Pretty new here coming in with my first analysis. Pick it apart if you will! I did have some trouble figuring out ARV due to limitations in the area with similar multi-family properties, so honestly I have no idea if thats even close. I just figure with it being old and getting some love it would pop up a decent amount. Could definitely be wrong though.

 A couple questions I have is:

Points charged by lender. What does this entail?

Is there a general rule on monthly insurance?

How do I calculate annual PV growth?

lastly, annual expense growth? 

Thanks in advance guys and gals, I look forward to learning a few things! 

Take care,

Ben McCracken

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

Hey Ben, I'm new as well so take what I say with a grain of salt. 

1) lowest interest rate I've seen for invest properties is 5.5% - you have 5% 

2) If you're dropping $10K for repairs, I would say you can drop your maintenance down to 5% 

3) Ive seen monthly insurance costs between $50-$75 

All-in-all looks like even your conservative numbers are solid with 11% CoC.

@Benjamin Mccraken

I didn't even have to look at the report to evaluate this deal. Consider your statements:

"so honestly I have no idea if thats even close."

"I just figure with it being old and getting some love it would pop up a decent amount."

"Could definitely be wrong though."

This is what I call "Pay and Pray". Not the smartest way to invest in Real Estate.

Read more books, listen to more podcasts, watch more videos, and find a mentor.

@Steve Hall Thanks for the advice Steve, I'm reading and listening every single day! I'm very aware that I'm nowhere close to where I need to be in order to successfully commit to purchase a property yet. I'm just following @Brandon Turner advice and trying to analyze one property a day so it becomes second nature eventually.