[Calc Review] Help me analyze this deal

[Tony Mai]

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[Matt Popilek]

I am not seeing how many units are in this asset which would help.

I would not personally want to be buying an asset that doesn't at a minimum kick off $100/door/month in net income.

With only 2-400 in net income per month you are 1 bad tenant, 1 leaky faucet, etc. away from a loss.

If you could see a very quick turn around on rent---IE: all tenants are month to month, and we can raise rents $50/unit in 30 days that might keep my interest long enough to dive deeper.

Cash Flow is more important than the Cap Rate on this deal. I would be trying to figure out how to make $200/door net/month. If I could find a way to make $200 per door quickly that would make things look better. Especially since this is not in the best neighborhood you are probably looking at higher than expected costs due to turn over.

Also if you go down this road charge High Security Deposit cover your back side because you will be using those funds to make ready the unit when they move out in most cases.