Updated almost 5 years ago on . Most recent reply
Help Me Analyze This Deal
I am absolutely worn out from using this calculator. It seems every single time I analyze a deal, the cash flow and CoC are extremely low. I am sure it has to be me doing something wrong but then I found this property. It is offered at 1.6M but I kind of tweaked the sale price and loan to bring it in line with an 8% CoC return or "base hit" as Brandon calls it. The cash flow seems good too, even at full list price. I have added in the documents where I got some of the information from in the comments. Perhaps you can look at the rental calculator and compare it to the spreadsheets from the owner and let me know your thoughts. There are a few items I did not include on the estimator like permits and fees, cleaning reimbursement etc because they only happened infrequently, so I can be on the conservative side. They aslo seemed to have very little cost for management fees so I suspect they may use a leasing agent but maintain the property themselves. I did keep 10% in the property management box on the calculator though. This looks like it could be a contender for cash flow but anything north of 1.4M isn't a base hit for CoC. Thoughts?