Help Analyzing! Deal for a 6-plex in Miami, FL

[Fernando Morales]

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

Hi all,

I am looking at a foreclosed 6-plex in Miami, FL.  I would love your input on the analysis.  

Main questions are:

Does my ARV seem reasonable?

What should I put for monthly insurance?

Thanks!

[Brian Garrett]

Your NOI calculations are wrong.

You're counting the total rent as NOI without factoring any expenses.

It should look more like this:

$1,350 x 6 units x 12 months = $97,200

$97,200 / 50% (Expenses) = $48,600 NOI

NOI / 5.5% cap rate = $883,636 property value

This is using the standard "50% Rule" to quickly estimate expenses but you would obviously need to get the actuals in order to really run the numbers in detail.