All Forum Posts by: Patrick Vera

Hi everyone,

Hoping you could take a look at this deal and help me see what I am missing:

Property is a condo constructed in 2003 and located in a college town.

Asking Price: 76,000
Cap Rate: 4~5%
Current Rent: 650/m 7800/yr

Expense Assumptions:
Vacancy - 10% (65/m)
CAPEX - 8.5% (50/m)
HOA - 90/m
Estimated Taxes - 120/m

NOI - 275

I am thinking of offering 62500 with 20%
Debt - 242.62

Monthly Cashflow = 32.38/m

This comes out to be a 3% Cash on Cash return. With a slight rent increase, the cash on cash return would be 4%.  Is this kind of deal even worth it?

@Brandon Turner and @Joseph Scorese, Thanks for the welcome. My wife and I have been pouring over the podcasts and they have been enormously helpful! We will have to check out #146. Thanks for the heads up!

@Saad Saeed Hey welcome to you! My wife and I are in the same boat and just starting out. If you hear of any good meetups let us know. Good luck to you brother!

@Cedric Stout Hey thanks man. Everything I am reading about REI in NJ is making me think I am in for a challenge. Won't be any fun if it wasn't challenging.

Hi, My wife and I are very interested in real estate and eager to learn from the best! With no experience our first step was to the library and to learn more online. We live on the Jersey Coast and hope to meet some awesome local investors.