All Forum Posts by: David Martinez

Hey BP, I'm a novice investor just getting started in RE. I have been trying to analyze deals and here are my numbers on this property at 225 S Stapley Dr in Mesa, Arizona (commercial multifamily). Really if anyone could give me feedback to make sure my numbers are correct (as I'm guesstimating on some numbers) that would be amazing! I am trying to analyze at least 3 deals a day to 1. get the hang of doing the numbers and doing them RIGHT 2. Hopefully finding my first deal so I might be able to partner with an investor if I do indeed find a deal.

Units:  28

Price: $1,680,000

Cap Rate: Not stated in page

NOI: Not stated in page

So to start off I would imagine an investor putting 20% down (use leverage to my advantage for a bigger ROI) so,

$1,680,000 x .20= $336,000 down payment

To figure out the NOI I used the zillow rentals app and found that in the area around this property rents are going between $900 to $1,200 (decided to use $1000 as rent per unit)

$1000 rent per unit x 28 units = $28000/month x 12/months = $336000/yr GSI

To get the NOI i figure that normally expenses would be between 40% to 45% (guesstimating as best I can) so i used 43%.

$336000 x .43 percent = $144,480 NOI

From here I went back to the amount that would be borrowed from the bank with a 20% down payment which is $1,344,000. On that amount borrowed from the bank I figure maybe 8% interest (not sure on current rates) so it would amount to $1,344,000 x .08 percent = $107,520/year.

In conclusion subtracting $107,520 yearly payment from the $144,000 NOI would get

$144,000 - $107,520 = $36,480 profit.

which in turn on the $336,000 down payment would yield a ROI of

$36,480/ $336000 = .01085 or about 10.8%.

This is one of my first properties that I have analyzed but want to make sure that I am doing them in the correct way, so any input you guys could give me would be great! Have a wonderful day everyone!

i currently am not hanging it with anyone but i will definitely pm you!

Good afternoon BP! I'm licensed here in Arizona and I'm wondering if anyone knows any great brokers that I might be able to hang my license with? That way I can hopefully earn some income from selling real estate while learning even more the ins and outs of RE investing.

I appreciate that @Doug McVinua I will be in touch as soon as the questions start to arise! Have a great day

thank you for the recommendations @Veni F.! I'll definitely be using these as much as I can to my advantage on my journey through the site!

Hello BP, I wanted to take the time to introduce myself. My name is David, I'm in mesa arizona hoping to learn as much as I can about the Real estate business. Im looking to get into wholesale, fix and flip, buy and hold, and eventually get into commercial investing when I have the experience so networking with people would who have experience in these fields would be great (if anyone is interested, lunch/coffee?). I've gotten my license as well to use in my investing. I have also heard about AZREIA meetings in AZ and wondering if anyone has been to one? (as I see one is today). Well, I'm looking forward to starting my career in the real estate investment business and reading all the great information biggerpockets users have to give!