is this a good deal?

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* Disclaimer - I am not currently invested in real estate. However, I do like math, and have an interest in the numbers as well.Because you are the investor, you will need to define what a "Good" deal is to you. What is your target Cash Flow?What is your target ROI?Based on the property you linked and the $800 you expect in cash flow, I'm presuming that this would be a leveraged purchase. You need to provide some additional information so that we can track along with your train of thought. How much Down? What interest rate do you expect? Do you intend to use a management company? What % of assessed value are you calculating for CapEx? What vacancy % are you calculating for (Because it is a multi-unit, your turnover might be higher)?I'm not in the Ohio markets, so I cannot tell you if the $800/mo per tenet is actually what you will get. However, I am suspicious of the fact that the listing only has one of the rooms as occupied (i.e. 75% vacant currently). Are there repairs that need to be done on the other 3 units that would increase the cost of entry? Is $800/mo above market?Additionally, the property you listed was built in 1907. There are special problems that come with older homes that may increase the cost of entry. Old/Aging/Lead Pipes. Lack of central HVAC or modern Insulation.Based on my numbers, this "$800" cash flow is heavily dependent on you taking on risk by taking out a loan over 30 years, no up-front repair costs, and no property management. These calculations were run on the following assumptions: 6% interest on the loan. 20% down payment 30 Year Loan. $700/month per unit /w 5% vacancy. 2.5% CapEx + General Repairs $6 per $1000 coverage (annually) for insurance (I don't know what insurance is in Ohio) $1628 Annual Property Taxes (Pulled from the Redfin, but subject to potential error) $100/mo for Eviction expenses (Which will happen, eventually. Lawyers are expensive). I've attached a screenshot of the spreadsheet if you really want to go in more detail on that math. With these values, you could potentially have $769 cash flow, before federal and state taxes. Because this would be leveraged, you'll need to determine if that volume of risk is worth it. By taking on the debt, you will be stuck paying it back for 30 years to maintain that level of cash flow. On paper, you could have a reasonable Cash on Cash annual return - but from a net worth perspective, it will take you multiple years to equalize. Make sure you consider net worth when evaluating the level of risk you're willing to take on. Highly leveraged properties will have great cash on cash, but come with a lot of risk.

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Free and clear (100% down) - given the very limited information available to me - my guess at ROI is around 9-12% (depending on if you count appreciation). It's not a terrible ROI in my humble opinion. My major concern with that facility is how much you would need to spend in repairs.If someone has a contrary opinion, I'd love to hear your thoughts (Speak Up! :)

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i used up my 5 lol

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@Jace Perez there’s always an exception to the rule but usually the great deals are found through networking and hustle. A decent deal might get listed with an agent that the owner knows. As to @Drew Sygit’s point if you don’t have a way of knowing your numbers or willing to spend $300 for something that will make you a better investor my advice would be you should not buy a rental property at a distance bc the chances are you will lose way more than that

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What is the difference of the bigger pockets rental calc and any other one?

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so only average deals can be found on sites like zillow and redfin?

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@Jace Perez why don't you put this all in one of the BiggerPockets Calculators?

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This is an average deal IMO. Things to consider are all of the reserves and vacancy that obviously you're not accounting for. Once you factor all of that in and the additional up front repairs I'm guessing this is about a 7-8% ROI. I don't get excited about that by any means but that's not uncommon for OOS investors. Other things that you can't tell from this is the area, are the current tenants willing to stay and are they still paying, what is the cost for rehab of other units, etc. Way to many unknowns to give a solid answer, but the fact that it's on redfin throws up MAJOR flags (that's typically where deals go to die). If it was a GOOD DEAL it would probably never make it to a site like that.

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i have a rental calculator and i just plugged the numbers into it from redfin, this one was also easier because the person had the rent price in the description. you can use the rental calculator on bigger pockets, you get 5 free ones then you have to pay so i just found another one.

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I'm curious how you calculate everything what what numbers you used? I'm also learning how to analyze deals.