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 over 6 years ago,

User Stats

141
Posts
120
Votes
Jaiden Olsen
  • Rental Property Investor
  • Kaysville, UT
120
Votes |
141
Posts

No money Down Opportunity in Utah

Jaiden Olsen
  • Rental Property Investor
  • Kaysville, UT
Posted

I've got a potential Opportunity to acquire a property with no money down. It's a 4-plex. 

My question about a no money down opportunity has to do with how to analyze the numbers? Because I have no money down, any cash flow generated would result in an infinite ROI. For instance, if I acquire a property worth $500,000 and it looks like it can cashflow at $250/month, my initial total investment would be $0. Therefore my ROI is infinite. The market in Salt Lake City, Provo, Ogden, and Logan is crazy right now, so financing anything is really hard to justify. CAP rates are regularly between 3-4%. But I need to get into another deal, and the future looks promising. So my question is this: is it okay to justify 2-3% CAP rates if my ROI is infinite? and if so is there a lower limit on the amount of cash flow I should expect on any given property?

Thanks for your feedback!

Loading replies...