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Updated about 3 years ago on . Most recent reply

User Stats

75
Posts
19
Votes
Wendy Busa
  • Madison, WI
19
Votes |
75
Posts

New Investor in Wisconsin-Duplex cash flow $250 deal or no deal?

Wendy Busa
  • Madison, WI
Posted

New investor looking to get a duplex. I have been looking for about 8 months. Just starting to get a better understanding of how to  analyze deals with the help of the Bigger pockets rental calculator. 

I have read that in this current market if you get a property to cash flow for $100 per unit that is the norm. Also, watching the webinars I understand that 90% of deals are not deals.

Most of the properties I have seen are ancient, built around 1900. Maintenance and lack of insulation for a property of this age scares me, but these seem to cash flow better.

I have come across a duplex that is built in 1955, all brick, but if my numbers are correct, it will only cash flow for about $250 total per month. Using only 5% maintenance, 5% vacancy, 10% CapEx, 8% management, plus additional for insurance.

When analyzing a deal should I be looking beyond the cash flow????

Thank you in advance, this community is of investors are wonderful.

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