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Updated over 5 years ago on . Most recent reply
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- Cost Segregation Expert and Investor
- Lakewood, NJ
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IRR, CoC, CapRate, or DTDMS ???
I know there are a lot of methods of analyzing a deal to see if it's worthwhile. Recently, I've been underwriting a lot of deals, trying to find my first 'big' (for me) MF property 40-100 units. I understand IRR, Cash on Cash, Cap %, etc. and how they can affect they can each paint a different picture.
Recently, a friend @Dovid Preil, pointed out a different method called DTDMS (Does The Deal Make Sense).
It reminds me of the eleventh commandment--use your brain.
There are often many factors that will make or break a deal, even if all of the metrics look good on paper, but it requires you to dig a little deeper.
What are some of those things that have, or could make or brake a deal for you?