# [Calc Review] Help me analyze this deal

4 Replies

Did I do something wrong? The CoC seems unreal. Its a \$80,000 4 plex that each unit rents for \$550

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*This link comes directly from our calculators, based on information input by the member who posted.

@Craig Dieterich - based on the numbers you provided, the CoC is correct. If I were you, I'd tweak the numbers a bit. Ie,

1. Change closing costs to \$5000.

2. Unless it's been recently renovated thoroughly, change Maintenance and CapEx to 8% each.

3. Count on at least \$25/person for Water; thus change to \$100 (better to go to \$120).

After these changes your CoC will drop, however it will still be quite nice. Good luck!

50% Rule: (550*4) x 12 = 6600*.50= 13200 - Mortgage cost = deal

10% Rule: (550*4) x 12 = 6600/80000*100 = 33% (Steal)

1% Rule: (550*4)/80000*100 = 2.75% (Steal)

Its a GREAT Deal!!!!

Originally posted by @April Munoz :

50% Rule: 550 x 12 = 6600*.50= 3300 - Mortgage cost = (if the number is positive its a deal)

10% Rule: 550 x 12 = 6600/80000*100 = 8.25% (Fails the 10% rule)

1% Rule: 550/80000*100 = .6875% (Fails the 1% Rule)

Just based on what you provided its a no deal for me.

@April Munoz   it's a 4 plex. each unit rents for \$550. The total monthly rent is \$2200

Originally posted by @Craig Dieterich :
Originally posted by @April Munoz:

50% Rule: 550 x 12 = 6600*.50= 3300 - Mortgage cost = (if the number is positive its a deal)

10% Rule: 550 x 12 = 6600/80000*100 = 8.25% (Fails the 10% rule)

1% Rule: 550/80000*100 = .6875% (Fails the 1% Rule)

Just based on what you provided its a no deal for me.

@April Munoz   it's a 4 plex. each unit rents for \$550. The total monthly rent is \$2200

Yeah I saw that. I just updated the math. 😁My Bad.