Can anyone tell me if this is a good deal?

[Shankar Kantharaj]

Found this listing on redfin:

https://www.redfin.com/MI/Detr...

700k multifamily, 14 units, fully occupied with rents around 700$ for new units. With a little renovations I estimate it would cash flow 10k gross income per month. Good deal?

[Michael Paling]

Hey Shankar, my first thought is that if you're having to ask random investors online if this is a good deal, are you trying to bite off more than you should? Could you find some local investors to ask? and what does "a little renovations" mean? are you accounting for all maintenance, CapEx, and vacancy costs too? what would be the NET income after accounting for all of that? Having a gross income of $10k a month won't matter if all the operating expenses (maintenance, CapEx, vacancy, taxes, insurance) and financing costs (principle, interest) total $10k a month too. If you haven't yet, I would suggest running this through the BiggerPockets calculators and then share those results with us (go to "tools" at the top of the site, then "Rental property calculator"). Doing that will help us give you specific feedback on what numbers may be good or bad.