[Calc Review] Help me analyze this deal

[Miguel Vazquez]

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Hello everyone,

This is looking like my first deal. The cash flow is not great, but I think the equity and value over time make it worth it. 

Any advice?

[Tim Herman]

@Miguel Vazquez Where did you get your numbers? GIGO. Taxes seem high, insurance seems low. Have you found the only property that has no vacancy and you never have to evict. Banks will underwrite at a 5% vacancy. Did you run budgets for capex and repairs?  Let's do some assumptions. Assume 1000 sf of flooring per unit. Ask what the commercial warranty is for your choice. Most will be 10 Years or less. That's your lifespan. My area it is $6 sf to replace.4000 sf*$6 sf=$24000/120 months lifespan=$200 per month for 1 item. Still have to save for roof, hvac, appliances, hot water, remodels, etc. One item already uses your capex budget. No pm costs so I should assume you are managing and your time isn't valuable. Are all the utilities separated.