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Updated over 6 years ago,
Deal Analysis Help!!!
Hi Everyone!
So i have this deal in front of be and I'm struggling with knowing what is a good ROI that I should accept. The property is priced at 132500 has four units and im going with an FHA Primary residence on it living in APT 4 with 3.5% down. I have a max offer in my mind of $125k and the seller is asking $129k not sure if Im missing a good deal in front of me. I have pasted the numbers from my calculations below.
I also have no real worries about vacancies since this will be a student rental.
| 0 | Mo | Yr |
| Sold in 14' @ 75k | Asking 132500 | |
| Apt1 | $ 910.00 | $ 10,920.00 |
| Apt2 | $ 500.00 | $ 6,000.00 |
| Apt3 | $ 720.00 | $ 8,640.00 |
| Apt 4 | $ 550.00 | $ 6,600.00 |
| Heat + Hot Water | $ (300.00) | $ (3,600.00) |
| Water | $ (113.00) | $ (1,356.00) |
| Insurance | $ (125.00) | $ (1,500.00) |
| Taxes | $ (414.49) | $ (4,973.93) |
| Property tax | $ (137.52) | $ (1,650.19) |
| Electric | $ (137.52) | $ (1,650.19) |
| Cash Flow | $ 1,452.47 | $ 17,429.69 |
| Sale Price | $ 125,000.00 | $ 125,000.00 |
| closing cost | $ 3,750.00 | |
| ROI | 0 | 0.135376233 |