What Am I Missing? Deal Analysis.

4 Replies

This deal has a $215/mo cashflow and 11.33% CoCROI. By Brandon's standards this seems like a decent deal. But I know I'm missing things, like the cost of new paint and maybe holding costs? 

I've been analyzing two deals a day. And I want to make sure that I'm not getting really good at doing this wrong >_< 
Any advice would be greatly appreciated. Thank you in advance. 

Deal: Artsy House on the Hill

Brandon's standards are not relevant to your market. These are assumptions and you are probably over-thinking it. Buy the deal if you can't lose money. If there is a chance that you can lose money, don't buy it. $215 per month is not enough cash flow for me personally, but my standard will differ from yours.

@Buck B. how confident are you that it’s going to rent well? I think $215 for a single unit isn’t bad as long as you were reasonable in your capex numbers. I always go pretty aggressive with capex. If I can still make the deal work, it’s got a lot more upside.

Thanks for the reply Anthony. As someone new to real estate who's never purchased a property, saying "Buy the deal if you can't lose money..." doesn't help me. This is the reason for my post. To see what other seasoned investors could point out that I'm missing. If you have any tips along those lines I'd like to hear them. Thank you. 


Originally posted by @Anthony Dooley :

Brandon's standards are not relevant to your market. These are assumptions and you are probably over-thinking it. Buy the deal if you can't lose money. If there is a chance that you can lose money, don't buy it. $215 per month is not enough cash flow for me personally, but my standard will differ from yours.

@Buck B. You would learn more about deal analysis from some older Grant Cardone videos or Matt Theriault or someone on youtube explaining Net Operating Income or How to underwrite a real estate deal. If you did the analysis and you think it's worth doing, you should buy it. You will learn much more by buying a deal than gathering opinions from others. There is a saying that you are either making money or getting an education. Buy a deal. The worst that can happen is that you get smart very fast. The best thing that will happen is you will make money, which will encourage you to do more deals.