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Updated almost 3 years ago on . Most recent reply

User Stats

36
Posts
13
Votes
Brady Ascheman
  • New to Real Estate
  • Benson, MN
13
Votes |
36
Posts

Deal Crunch (Help Wanted)

Brady Ascheman
  • New to Real Estate
  • Benson, MN
Posted

I was wondering if you could walk through a potential deal with me? Asking price $89.900. 2 bed 2 bath. I estimate monthly rent to be anywhere from $750-$800. I used bigger pockets calculator and calculated an offer of $75,000 10% down payment, interest rate 6% loan term 15 years. $10,000 estimated repair costs.3% Vacancy 3% Maintenance 3% Cap Ex. $794 Tax $500 Insurance. Now what I am curious about is when you analyze a deal at the end what numbers do you look at. I have a 2.2% CoCr and 9.6% Cap Rate. What number do you base your buy or pass up decision off of?

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