Updated over 4 years ago on . Most recent reply
[Calc Review] Help me analyze this deal
Getting ready for our first purchase and would love to hear any input people have.
Our objective in real estate is slightly different than many others - we're over invested in company stock so are diversifying to real estate for less volatility. We don't need the cash flow right now. This is a long term play.
Property is a duplex in a hot neighborhood in a hot market for appreciation (Nashville). Idea is to hold for minimum 5 years, likely longer. The place has been recently flipped so new bathrooms, paint, floors. Opportunity to modernize kitchens in the future. Built 1980, brick. Tenants already in place with a year lease and they look solid. Tenants pay all utilities.
What am I missing??
Bonus Question: We're doing a walk through today. Any tips on thinks to look for / gotchas appreciated!
*This link comes directly from our calculators, based on information input by the member who posted.
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#5 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
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#5 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
@Crystal H., here are the things I think of when I look at your analysis:
Who is leasing the property? Often times 1 mo rent for new leases, 1/2 month rent for renewals.
What is the condition of the HVAC, water heater, roof and gutters, patios/decks, fencing, etc? 80s built means might be on original roof, but likely 1/2 through the second roof.
You mention there is opportunity for a kitchen, how is that being paid for and what is the lift available?
Who does the landscaping? Is trash built into property taxes? You only have $50/mo of fixed costs and $119 for repairs. If you have someone cutting grass once per week at $25/cut, that is almost all of your maintenance budget each month.