Need Help Analyzing Deals

[Tyler Foshe]

I am learning how to analyze deals but almost all of the properties that I analyze have a negative cash flow. At this point I am starting to think that I must be doing something wrong. Three of my reports are linked below. Please note that I live in the Los Angeles area so the one LA deal that I analyzed assumes that I manage the property myself. For the out-of-state deals I would be using a property management company. If anyone has any advice for me I would appreciate it very much. Thank you.

1. 1. Deal 1
2. 2. Deal 2
3. 3. Deal 3

[Matthew Forrest]

@Tyler Foshe In LA's defense there are absolutely properties that you can get to cash flow. I bought my house with 5% down and built an ADU and it cash flows no problem. Yes, that cash flow is a low return on equity, but the appreciation has been great. In regards to the specific property in Torrance you were looking at, that's a new construction next to a Jiffy Lube and across the street from an oil refinery. In my opinion that makes the list price difficult to attain. If it were me, I would calculate max offer prices instead of calculating if something cash flows or not. Determine how much you would need to pay in order to get the returns you want and then make those offers even if they're below list. Eventually one of your offers will be accepted and it will be a great deal!