My first home / Mfh Investment Deal

[Shema Turner]

MULTIPLE FAMILY ANALYSIS

Hello BiggerP, I am about to purchase my first home, so I have been trying to analyze a deal. I have been using the research I found on BiggerPockets and I am confident that my analysis is right. So I figured that I would post my findings up in hopes that the Biggerpockets council could provide me some prospective.

TOTAL LOAN AMOUNT $30 K (FROM A FAMILY MEMBER)

PROPERTY INFO:

Current value: $41,500

Vacancy rate: 10%

Renovation: $8,000

Property tax: $950 (YEARLY)

Insurance: $1,000(estimate) (YEARLY)

Rent per unit: $650-$725 (MONTHLY)

Purchase price: $27,000 (cash purchase LOAN FROM FAMILY MEMEBER)

NOI = $12,600

Income - Expenses = $15,600 - $3000 yearly

CASH FLOW = $6,600

Noi - Debt = $12,600 - $6,000

$275 per door

One thing that has been troubling me is how to take this research and figure out the cap rate.