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Updated over 5 years ago on . Most recent reply

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Darin White
  • Auburn, AL
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Newbie trying to better understand the calculator reports

Darin White
  • Auburn, AL
Posted

I am new to all of this and have been listening to the podcasts for several months now. I have also been reading a great deal and attending the BiggerPockets Webinars. I am ready to jump in and get that first property and have been running quite a few reports on potential properties. My problem is that I need help understanding the important parts of the reports and what they mean. I know Brandon says on the multifamily properties you should get at least $100 per unit/month ($200 is a home run) and have a cap rate of over 12%. Can y'all look at this deal and give me whatever feedback you can that might help me understand how good/bad this deal is? What are some of the nuances that might be helpful to know? Below is the link to the report.

https://documentcloud.adobe.co...
 

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@Darin White you can use the share in forums on the last page of your analysis. It is in blue just below the property description, A little easier to read. Your capex figure is a little low. I use 23% for vacancy, repairs, and capex. Your pre finance numbers are wrong. rehab 3 months = 0 income. 1 month income = 3/4 or 75% vacancy. I don't think Brandon was talking about cap rate but cash on cash of 12%, I might be wrong. I look at how long it takes to get all your money out. After refi you have $8000 of your money and Net operating income( gross income less expenses) PI, taxes, insurance and PM $614. $8000/$614= 13 months to  get all your cash back. Your cash is no longer at risk. The others are reserves and need to be accounted.

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