All Forum Posts by: Gursimran Singh
Gursimran Singh has started 5 posts and replied 13 times.
Post: Multifamily Deal Analysis
- New to Real Estate
- California
- Posts 13
- Votes 3
Originally posted by @Michael Y.:
First thing that I noticed is the 100% occupied, I would run projections based on having some units vacant for a certain period of time. The rehab is fine per unit as a light refresh, but I would make sure the existing building doesn't need repairs or larger rehab items if needed as you didn't budget for that.
That makes sense. Thanks for the input.
Post: Multifamily Deal Analysis
- New to Real Estate
- California
- Posts 13
- Votes 3
The property address is 509 Lincoln Road W, Vallejo, CA. 11 unit building that consists of (5) 2 Bed, 1 Bath units and (6) 1 Bed, 1 Bath.
Asking Price - $1,595,000
Yearly Analysis is based on average market rents 100% capacity.
Income-based off average rent ($1,453 for 1 Bed) ($1,728 for 2 Bed)
Revenue - $208,296 ($8,640+$8,718*12)
Expenses - $114,562 (Rough estimate 55% of income)
. NOI - $93,734
. Purchase Price - $1,102,752 (Based off NOI at 8.5 cap rate)
. Down Payment - $275,688 (25% of purchase price)
. Rehab = $27500 (at $2500 per unit)
. Loan Payment - $46920 (Amortized over 30 years at 3.92% interest)
. Total Cash In - $303188
. Cash Flow - $46814
. ROI - %15.4
Where are the flaws in this analysis? How should rehab be determined per unit? If brokers are not picking up the phone for rent rolls do I analyze the deal based on average market rents? How does this deal look to you?
Again, any input is appreciated I am open to criticism and the oppurtunity to learn from this. Thanks again, everyone!
Post: How to Invest at 18 Years Old?
- New to Real Estate
- California
- Posts 13
- Votes 3
Hello Everyone,
I am 18 years old and I started investing 4 months ago. I invest in my Roth IRA monthly and I have started reading about real estate a lot as well. I transfer next year to a University and I was wondering how I can purchase a multifamily before I turn 20. I would love to purchase a quadplex or triplex near my University and live rent free with some roommates. Is this a viable option? Do you guys have any other tips I can use to start investing more into myself other than just an IRA?
P.S. I do only have some cash saved up but plan to be near $10000 by the time I transfer.