Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 2 years ago on . Most recent reply

User Stats

5
Posts
1
Votes
Justin Knox
1
Votes |
5
Posts

[Calc Review] First time investor with capital

Justin Knox
Posted

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Hey, just wanted a little feedback on this multifamily property. According to the analysis does the property look promising for a long term rental hold? I'm a first time investor, but I've been preparing for a year now. Any feedback would be appreciated.

Most Popular Reply

User Stats

958
Posts
1,137
Votes
Tchaka Owen
  • Real Estate Agent
  • Merritt Island, FL
1,137
Votes |
958
Posts
Tchaka Owen
  • Real Estate Agent
  • Merritt Island, FL
Replied

@Justin Knox - the numbers need a little adjusting; it's very important that the input is as accurate as possible and you make your decision based on what comes out. Too often newbies want a deal so badly, they massage the number to make the deal work. Here are a few changes:

1. As mentioned by @Nathan Grabau, 6% is low. I adjusted to 7%

2. Mgmt was adjusted from 7% to 8%. Either self-manage or pay a good company to do it. Don't try to skimp, the service you get will reflect that. 8%-10% is the going rate for good places.

3. Water/sewer & garbage will not be $65 for a duplex. It will either be $0 or $180ish - depending on who pays.

4. New construction means everything is new (awesome), however 2% and 4% for maintenance and CapEx seems low. 4%+4% is ok to start, but 6% total is skimping.

In the end, the numbers still work. They're just not as juicy as per your calculations. Good luck!

Tchaka

Loading replies...