All Forum Posts by: Denton Beam

Can someone explain total annualized return to me. Why does it peak around ten years?

@Immanuel Sibero

Thanks Really appreciate the input

There are nine other duplexes included in the hoa

@Robert Fornwalt

There is an hoa of $250 a month

@Immanuel Sibero 

With that being said, do you think it would be wise to put more cash down on a property in order to get a lower interest rate? Or find deals where less is more. I ran numbers on this one at 339k with 20% down and the same interest rate of 5.5%. It got the CoC to 5.81% with 6.62% cap rate. Still not close to the CoC being higher than the cap rate. looks like that interest rate really kills but I think I would go for the deal with those numbers?

Thank you everyone for responding to my post! Sorry for leaving out all the important information. Here is what I came up with using the BP calculator. I am by no means looking to get rich quick with this type of investment but my end goal would be to create enough passive income to live comfortably within the next, let's say, 15 years. Please let me know what you guys think. 

Totally new to real estate investing. I have read lots of books and studied lots of numbers now it's time to move on something. My wife and I looked at a duplex this weekend so I ran the numbers. Seemed real easy, have punched them in tons of times (random houses on Zillow or Redfin). Well... maybe not so easy now that it's our money on the line. We are not sure if we are trying to talk ourselves out of the deal or if the numbers just aren't that great. The units are basically turn key would paint the inside and fix a couple minor things maybe 500 bucks. Tenant occupied in one unit for six more months other side is vacant. Anyway the place would cashflow at the asking price but the cash on cash ROI would only be 3% seems to be very low. Does that make this a horrible deal? The cap rate would be little over 6% witch does not seem to be to far off for the area.