Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 7 years ago, 01/18/2018

User Stats

25
Posts
3
Votes
Tyler Witkowski
  • Rockford , Il
3
Votes |
25
Posts

2nd Deal making me nervous

Tyler Witkowski
  • Rockford , Il
Posted

Hello my friends!
Im in the middle of signing a contract with a deal and its really making me nervous. Ive run the numbers and its a good cashflowing property. Well I should say its a great ROI property @ 26.7% to be exact! It makes me extremely nervous because its only at $66 a door. With it being a duplex it will only net $133 cashflow. Im trying to pull the trigger but im getting a weird gut feeling I cant exactly shake off.

The first year before I change the taxable amount for my county it nets the 26% ROI with only $6000 down of my own money bringing in a total of $133 cashflow. The second year I predict it to be 32% ROI, still only $6000 of my own personal money and $163 total cashflow.  I can raise rents slightly higher giving the cashflow i want, but I dont want to rely on a prediction that can possibly fall through, I like to be slightly pessimistic in the beginning of deals. I ideally want $100 per door.

I see great ROI but not a lot of cashflow to justify it.
I want to hear all of your opinions, especially for this being my second rental property, is it a wise decision?

Loading replies...