All Forum Posts by: Paul Koenig

 Hi Joe, commercial is generally a bit of a different animal, because rates and term are different than smaller residential mfh. I don't have as much experience in that regard and I believe some different financing comes into play with balloon loans and utilizing equity over the term of the balloon.

Hi Kendrick, I always see a ton of "calling all investors" type MFH listings for sale.  They are generally all not very good.  BR mentioned in one of his videos that you need to just keep analyzing deals every day and you'll start to see the good ones.  When I first started with BP I did that, and had an easy Excel sheet you can just input a couple key numbers into and it does the rest.

The quick 1% rule will tell you alot: Rental Income divided by Price.  If your result is under 1%, run.  If it's over 1%, it will make very little money.  Over 2% it should be decent cashflow.

For example: $2,000 rental income / $250,000 property price=.8%  Your expenses (unless you pay all cash) will be in the neighborhood of $2,200 and your income is only $2K.

To your point, most advertised deals stink, unless your willing to accept a low single digit return.