Minneapolis Househackers, would live your feedback on this analysis.

I feel pretty good about this one. Rents of ~$1600 per side seem reasonable for this area (per MyRentRates.com and the listing).

Each unit has 3br/1ba.

If you are familiar with the area, I hope you'll let me know how I can tweak my analysis to make it more accurate.

AJ

3 words: Debt Coverage Ratio....

Originally posted by @James Hamling :

3 words: Debt Coverage Ratio....

Thanks for the feedback James.

For my future reference, what would a good deal look like in your estimation? 

Is there a specific cash flow number? Equity number? DCR?

I'm trying to find workable deals in my analyses, so I definitely would like to fine tune them if you have any specific tips on what I should look for to improve my analysis skill.

Thanks for your time,

AJ Smith

Originally posted by @AJ Smith :

Originally posted by @James Hamling:

3 words: Debt Coverage Ratio....

 

Thanks for the feedback James.

For my future reference, what would a good deal look like in your estimation? 

Is there a specific cash flow number? Equity number? DCR?

I'm trying to find workable deals in my analyses, so I definitely would like to fine tune them if you have any specific tips on what I should look for to improve my analysis skill.

Thanks for your time,

AJ Smith

A good deal would look something like this https://www.biggerpockets.com/...






















 

@James Hamling could you put the pdf on here? I'm not a pro member so it seems they've restricted my access to looking at that analysis.

Hi AJ - same note I posted on a previous analysis for you, $1600 seems very high for this area. $1400 seems optimistic, and I'd stress test it down to 12.

@Jacob Johnson appreciate the feedback. I will stop taking listing rents at Face Value and start doing comps with other places in the area. 

no problem! It might make sense for you to pay for access to Rentometer or something similar, you can get basic access for a year for a pretty reasonable price. I personally like to check a few different places to come up with a suitable average.

@Jacob Johnson found out its on sale; 1 year for $49 - just subscribed! Thanks!

@AJ Smith fantastic!