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Updated over 6 years ago,
Stuck on analyzing deals
Hi ya'll! My name is Josh. I recently retired medically from law enforcement out here in California. I just got my real estate license and have been heavily reading about building cash flow through multifamily properties. I'm working with 200k of my own money and would like to capitalize on that. I was thinking of a system something like flip, flip, flip, acquire a multifamily rental, flip, flip flip, acquire etc. I have a couple of great mentors I grew up with that are doing great our here with flips and rentals and I'm actually on one of their teams for the retail side. However, I'm finding it difficult to gather their time and learn how to analyze deals. I'm getting potentials deals sent to me from other agents and MLS alerts I have set up for my specific criteria, but I get stuck on analyzing a deal. For example, I am looking into a triplex here in California. The asking price is 579K (I know I don't want it for that). GSI is $39,600, NOI is $27,100 ($12,500 annual expenses according to the listing). I tried using the 50% rule, but I must be doing something wrong because according to me I would have $,1650 left to pay my mortgage, which is not going to happen. I feel like once I get the analyzing down I will be ready to move forward and start making offers on properties, however, I have been stuck on analyzing for a few months now and it has become quite frustrating. I also suffer from PTSD being a Marine Combat Vet, which I feel contributes to me getting frustrated rather quickly. I'd like to get a system for analyzing put in place to get the ball rolling. I have watched several of Brandon's videos on analyzing deals and several others and even listened to several podcasts on the topic, but for some reason things haven't clicked for me yet. Any help, advice, etc. is greatly appreciated. I prefer the Marine Corps "KISS" method (Keep It Simple Stupid). Thank you all.