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

Running Numbers Based on Purchase Price or After Repair Value?

Jaiden Olsen
  • Rental Property Investor
  • Kaysville, UT
Posted

I'm looking at a duplex in the Ogden Area (about 50 minutes north of Salt Lake City, Utah). The owner has rejected several offers that have come in below asking price and is dead set on his price. That being said, I'm having a hard time getting the numbers to work at the asking price. The other challenge is that the current tenants have leases that don't expire until the spring of 2019. Each unit is currently 2 bed/1.25 bath renting at $950/month. There is plenty of space in each unit to make them each  4 bed/2 bath and bump rents to ~$1300. 

That being said, when I run the numbers based on the current leases and asking price, I'm positive $50/door until spring (Cash on Cash of 6.5%). However, after the leases are up and I remodel each side and bump rents, I'm cash flowing at $325/door (Cash on Cash of 11%). 

My question may have an "it depends" answer, but I want to know your thoughts. Would it be too risky to take this deal? If the numbers don't work very well right away, but they will work great in 6-8 months, can I justify the deal?

Loading replies...