Please....Help me analyze this deal 50% rule negative cash flow

[Erica Hatfield]

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[Jason D.]

@Erica Hatfield its negative with the 50% rule and not in your analysis because your expenses are way too low. Nearly all of them.

Have you gotten a 4% interest loan quote with 0 points on a commercial property over 30 years? That seems low. I would have guessed 6% minimum.

$2500 closing costs on a $1,000,000 transaction? Probably closer to $10,000 or more.

Vacancy should be 5% - 8%, capex and maintenance should be $100/unit per mo. At a minimum, maybe as much as $200/unit.

I Would try to get the previous owners schedule e to see what their real expenses were.