[Calc Review] Help me analyze this deal

10 Replies

Hi Randy

So I took a look at your deal.
For me personally I wouldn't make this deal.

Some of the big deciding factor are the following:

1. The property doesn't come close to passing the 1% Rule
2. Your Expenses are a little too close to your Income

What type of unit is this?
Layout of the property? (# Beds, # Baths)

In my personal opinion, the duplex rather overpriced for the rent that its generating.

Additionally, with your CoC% it is no better than the stock market (3%-6%).
I usually look for deals that will get a 10% CoC at a minimum.

Lastly, be mindful of the 50% Rule it will help quickly assess properties as you shop for deals. 

@Luis Sanchez Rodriguez

I am going through a similar situation in Florida. Prices are higher so coc roi is low, 4-5%. Not good.

I am having trouble finding a deal where I can get the coc roi above 10%. Where does loan pay down come into play? If I out 10% down and rent is small positive cash flow and covering expenses does this lain pay down and building equity count for something ?

@Chris Klingemann
So from what I was taught, your CoC is heavily dependent on how much of YOUR cash is put into the deal.
The BP Calculator assumes any down payment being made is money coming from you.

What is your goal for financing your deal?

For me, my goal is to purchase my deal with 100% leverage...none of my own money going in.