Practicing deal analysis and can't seem to get positive cashflows
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- Real Estate Broker
- Cody, WY
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I wouldn't buy it. You'll have to renovate it and there's a good chance you're numbers are off unless you're an experienced rehabber. After you're done renovating it, you'll have a property with a little equity (assuming the market stays strong) but you'll still only be cash flowing about $50 a month. One month of vacancy will eat up two years of cash flow.
I'm in a market where the average single-family sells for $260,000 and rents for $1400 - $1600. It's tough to cash flow here, but I'm able to do it by being patient and purchasing properties that haven't hit the market. I searched Raleigh for a few minutes and didn't see anything that struck my interest. You have a population almost as big as my entire state, yet I only saw nine multi-family advertised on Zillow. It's probably a really hot market and investors are snatching up anything decent.
- Nathan Gesner
