[Calc Review] First time investor with capital
*This link comes directly from our calculators, based on information input by the member who posted.
Hey, just wanted a little feedback on this multifamily property. According to the analysis does the property look promising for a long term rental hold? I'm a first time investor, but I've been preparing for a year now. Any feedback would be appreciated.
Most Popular Reply
@Justin Knox - the numbers need a little adjusting; it's very important that the input is as accurate as possible and you make your decision based on what comes out. Too often newbies want a deal so badly, they massage the number to make the deal work. Here are a few changes:
1. As mentioned by @Nathan Grabau, 6% is low. I adjusted to 7%
2. Mgmt was adjusted from 7% to 8%. Either self-manage or pay a good company to do it. Don't try to skimp, the service you get will reflect that. 8%-10% is the going rate for good places.
3. Water/sewer & garbage will not be $65 for a duplex. It will either be $0 or $180ish - depending on who pays.
4. New construction means everything is new (awesome), however 2% and 4% for maintenance and CapEx seems low. 4%+4% is ok to start, but 6% total is skimping.
In the end, the numbers still work. They're just not as juicy as per your calculations. Good luck!
Tchaka