would you say this is a good deal for a newbie?

[Dieudonne T.]

Price	1% rule =	desired rent
79,900	0.01	799
price	79,900
closing co	2000
monhrent	831.00
total cost	82,731
Loans
price	79,900	Down % |
downpay	11985	15.00%
total loan	67,915
Money Needed =		14,816
MONTHLY ESPENSES
PAYMENT	$324
tax	$140
insurance	43
vacansy	41.55	5%
repairs	41.55	5%
mangemnt	91.41	11%
cap	103.875	12.50%
TOTAL	$785
EVALUATION
MONTHLY INCOME =		45.62
YEARLY CASH FLOW=		547.38
CASH ON CASH =		3.694519438	%

[Nick Robinson]

@Steve Smith

Hey Steve,

A duplex is not a commercial property. For multi family a commercial property is 5+units. Are you saying that you would rather have SFRs over an apartment complex? What’s the reasoning behind that? In my experience the numbers work better, it’s more scalable, it’s a safer investment and it’s easier to manage.

I do agree with you that they don’t build duplex’s, triplexes our fourplexes anymore so most of them were built in the 60s, older neighborhoods, and may have differed maintenance costs.

Biggest thing for your first deal is make sure you have underwritten and analyzed a fair amount of deals. Once you feel confident with the numbers make sure the property cash flows then buy it. Going to a rougher part of town because you can “get a better deal” doesn’t always pan out and it can cause more issues than you want.

Warren Buffett, “I would rather buy a great product at a fair price then buy a terrible product at a great price”