[Calc Review] Help me analyze this deal

2 Replies

I’m fairly new to the calculators & this would be my first deal, a fourplex, It shows negative cash flow but, I didn’t know if I was plugging in the numbers right? If I was giving too much for vacancy, Cap Ex, etc. Thank You for the advice/tips! I plan on managing myself but, I was told to always apply management fees just in case.

You are not doing anything wrong with the calculators.  You did a great job.  Others may argue that you could bring your cap ex or repairs down a little, but I personally prefer to be a little more conservative with my estimations.  I'd much prefer finding out that I overestimated expenses than underestimated them once I purchased a property.  That may mean occasionally passing on what may be a viable deal but I'd much rather find a deal where the numbers work out with the added buffer.

As for this property, it doesn't look to great on the surface but you may be able to refine a few things.  For the property taxes, is that figure truly representative of the actual expense or did you simply choose a percentage of your expenses to allocate to that figure as well?  Property taxes are available on any major platform (Realtor, Zillow, Trulia, etc.) so you can really hone in on that number.

Are you planning to house hack this property?  By the size of the down payment you input it looks as if you may plan to reside in one of the four units.  Is this the case?  If so, it may affect your rent and property management line items.

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