Deal Analysis- Are my Numbers Right? Is this a Deal?

[Nick Troutman]

I have been running numbers on a double duplex (4 units) and I think I have it correct in my spreadsheet, though would someone mind looking at the numbers with fresh eyes to see if I forgot something, or did any of the math wrong. Is this a deal?

[Trent Stone]

Yup! He better have taxes, receipts, bank records, leases, etc. to prove everything he is telling you. You would not believe how many "p&l's" I have see thrown together in 5 minutes with excel. If he wants you to believe it, he better be able to prove it. "Trust but verify". You can also talk to PM's who work the area and ask them what expense ratios are for that specific area. ie. all your operating expenses (does not include financing costs) should add up 40%. I'm not an expert in markets in the south, but I would imagine your expense ratios would be pretty low. I imagine somewhere in the 35-40% range, but don't quote me on that.