Analysis of My First Deal

[James Ritter]

I found a deal that looks pretty good to me after looking at dozens. I am hoping some veterans can jump in and tell me if I am missing something or if I am on the right track. In case I am breaking rules I don't want to actually link the page but if you search it you can pull the financials where it is listed.

986 Sexton Dr   Stone Mountain GA

22 Units

100% Occupied

Asking: $2,000,000

Down Payment: $500K

T3 Annualized Actual Income: $198,672

T3 Annualized Actual Expense: $73,487

Debt Service: $85,934

Net Income  $39,250.25

I come up with a 6.26% Cap and 7.85% COC ROI which I would be happy with on a first deal.

The Proforma shows a 14.48% COC ROI. I am completely ignoring this part of the Memorandum. Do you usually do the same? It does look (based on Craigslist and Zillow) that the rents are under priced. What tools do you use to confirm or dispute that?

If this was a deal you found. What questions would you be asking? Would you consider this property? Why or why not?

As always, Thank you in advance for any insight you share