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Updated over 5 years ago on . Most recent reply

User Stats

1
Posts
1
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Anselm Tintinu
  • Rental Property Investor
  • Magnolia, AR
1
Votes |
1
Posts

Deal Analysis - ROI Vs Cashflow

Anselm Tintinu
  • Rental Property Investor
  • Magnolia, AR
Posted

New to this, will appreciate your valuable input. 

I'm looking at 2 deals: first is a 5plex and the other, a pack of 10 SFH. After my calculations (using biggerpockets rental cal); 5 plex yield a ROI of 14.45% with monthly cashflow of $582. The pack of 10SFH yields a ROI of 32.63% but cashflow is $1,734. They all meet the 1% rule/test

Brandon (from BP) teaches that for a SFH make sure each unit produces a cash flow of at least $200, and for MFH $100 per month. While the ROI is higher for the 10SFH deal, it doesn't meet this "rule". How would you analyze this, what deal will you go for?

Thanks much!

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