Cash Flow per Door

[Taylor Harrison]

Hello All-

I analyzed and run my first tri-plex to perfprm at >100 per door (which I put down 25%) and look a this as a good rule of thumb.  Should I hold this same to be true while analyzing deals with no money down strategies?

Thanks BP 

[Jeremy Jackson]

Each property will be different, along with financing scenarios.  I'd recommend continuing to analyze different deals, just to gain experience and play with different numbers.  Also, check out different deal analysis posts on BP.

[Justin Ericsson]

need more date to review to give feedback 

[Joe Villeneuve]

Need a LOT more data to have an opinion.

What does >100/door mean here?  Based on your title, I assume it means 100/month cash flow per door.  

What was the cost of each door?  You said the calculates out to 25%/door.  25% of what?  The cost of the door?  The rent?  The cash you put in?

[Brent Coombs]

Originally posted by @Taylor Harrison:

Hello All-

I analyzed and run my first tri-plex to perfprm at >100 per door (which I put down 25%) and look a this as a good rule of thumb.  Should I hold this same to be true while analyzing deals with no money down strategies?

Thanks BP 

300% gross return per year sounds good to me! 

If net, MUCH better!

If with no money down, EXPONENTIALLY better!

But I realize, that's NOT what you are saying. Please provide proportions...

[Taylor Harrison]

@Brent Coombs@Joe Villeneuve@Justin Ericsson

I purchased my first Tri-plex with 25% down and it cash flows well over $100 a door per month.  Rents are $1125 purchase price was $43,875.

Property I am analyzing with close to ZERO money down looks like this:

FSBO Asking Price: $180,000 in a decent location close to small down town of Dixon, IL.

5 units Total rent:  $2330

After running the numbers total cash flow for the year is about $5000. $83/mo/unit.

 Should I accept lower cash flow per unit when putting close to ZERO down?

Thanks ALL!!!

Property Taxes	Annual	4,000
Insurance	Annual	1,200
Maintenance & Repairs	Annual	2,796
Utilities	Annual	1,780
Advertising	Annual	300
Administrative	Annual	0
Variable Cost PM	(% Income)	10%
Fixed Cost PM	Annual	0
Other 1	Annual	1,200
Other 2	Monthly

[Brent Coombs]

@Taylor Harrison, if your numbers are right, I see nothing wrong with $5k/year of FREE money! Would I prefer $10k/y free money? You know the answer!

One concern might be: because you would be beholden to your Lender to the tune of more than $200k, what would be your wriggle room for FURTHER borrowings from them, once you come across even BETTER buys?...