I've been consistently analyzing deals in LA on a daily basis and had to keep writing "Damn" on the bottom of my pages of paper after analyzing that the property will not cash flow. Well, I finally found a property that I wrote "Yooooo" next to the monthly cash flow of over $600. I'd like to share with ya'll and receive some feedback, por favor! Without taking too much of your time, let's jump right in.

Rent comparables, using the lower-mid end of the market:

1/1 - $1475

3/2 - $2500

Mortgage 30YF @ 4.359%, 14% down

Triplex- 3/2 & 1/1 & 1/1

Asking Price 519,000

EGI

65,400 - vacancy (5%) = 62,130

Yearly Operating Expenses

Taxes (1.15%) - 7,785

insurance - 1500

repairs (5%)- 3270

CapEx (10%) - 6540

PM (10%) - 6540

Utilities - 1500

Total Expenses- 27,135

NOI= 34,995

34,995 - 27,384 (mortgage- refer above) = 7,611

$$$634$$$ CASH FLOW per month, or over $200 per door for this multi in LOS ANGELES, CALIFORNIA CA!!

I've now analyzed dozens of deals and all of them have been big fat negatives. This is the first one to provide me with some hopium in a cash flowing rental in the LA market. Please chime in and provide some feedback! But more importantly, tell me if I need to add or change my formula in analyzing a deal. Much appreciated!!

P.S. I would like my CapEx number and repairs estimates to be a bit more concise in the future.. atleast not a percentage of gross income but rather a hard estimated number I'd allocate on a consistent basis. Anyone have any suggestions on coming up with this number or does this come with time and experience? Brandon makes a great point here and is a good place to start.

Thank you all a ton!!

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Met the 1% rule in hot HOT LA

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