All Forum Posts by: Brad Kelly
Brad Kelly has started 1 posts and replied 5 times.
Post: Multi family newbie, deal analyzer checklist?
- Posts 5
- Votes 0
Originally posted by @Todd Dexheimer:
A "good deal" is dependent upon your idea of good return. For me, you need to look at a few things. First your cash on cash return, next your overall cash flow, then your debt service coverage and finally your appreciation gain potential. You have other things to look at as well, such a neighborhood type, economic factors, government influences, management factors, building type, financing structure and age and overall business plan/strategy.
Great thanks Todd!
Are there certain types of factors that are a "must" for you to enter a market?
Post: Multi family newbie, deal analyzer checklist?
- Posts 5
- Votes 0
Originally posted by @Tj Hines:
@Brad Kelly our metrics are at 9% CoC return over the life of the investment, usually 5-7 years. 15% IRR. And at least 1.5 DSCR
Thanks TJ!
Do you have certain metrics that you look at to determine if a city/region is an attractive market for Multi-Family?
Post: Multi family newbie, deal analyzer checklist?
- Posts 5
- Votes 0
Originally posted by @Cory Carlson:
Get a buyers broker. It does not cost you anything, they have the analysis tools and pulse on the market. If you wanted to learn yourself, check out the bigger pockets free software. Analysis is only as good as the information you put in - Garbage in, garbage out!
But to answer your question, here is my analysis template that shows the initial metrics I look into.
Thanks Cory, this is very helpful!
Post: Multi family newbie, deal analyzer checklist?
- Posts 5
- Votes 0
Originally posted by @Nick B.:
Do you have a definition of a "good deal"?
Not quite yet... and my question probably wasn't well structured on second thought :). I know I want to focus on Multi Family. But I am not sure which cities/regions i want to be in. And I just dont want to say hey what's a good market to buy in!? I more want to understand what makes a market suitable for a multi-family investor. So I am curious what metrics other multi-family investors look at when entering a market. Population Growth, Unemployment, Median Income, Sources for jobs etc.... any thoughts?
In addition, any metrics that you use when analyzing the actual property will be helpful as well. I understand NOI, Cap Rates and financial statements but i am curious if there are certain ratios that i should be aware of or put an emphasis on to help me identify a good opportunity or a red flag.
Thanks for your help!
Post: Multi family newbie, deal analyzer checklist?
- Posts 5
- Votes 0
What metrics should I be looking at to identify a good multi family property? Appreciate the help!