[Calc Review] Help me analyze this deal

4 Replies

@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!

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.