Analyzing first buy and hold

[Steven Cowles]

Hey guys. I’m nervous. I have bought 12 deals in the last two years but all 12 have been flips. I’m looking at my first buy and hold. I have run the numbers a hundred times but want some reassurance.

I think I could buy it for $325,000. Needs $10,000 in upgrades. 10 units renting for $650 a unit. Taxes are $5,000. Insurance would be around $2400 a year. Can you guys help me decide whether or not it’s a good deal? 😬😬😬😬

[Jon Crosby]

@Steven Cowles  If you have done 12 successful Flips, I'm surprised you are so hesitant at your ability to achieve a successful buy and hold to be honest.  12 flips is a great accomplishment and you should take that energy and confidence into your buy and hold investment.  

If you have analyzed the numbers and confident they are solid then I'm seeing around a 9% cash on cash (assuming you are paying all cash) which is a pretty decent deal.  Obviously you want to do a lot more due diligence before making an offer but seems like a 'decent' deal at least on the surface. 

Best of luck!