Real Estate Deal Analysis & Advice
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal


Real Estate Classifieds
Reviews & Feedback
Updated over 15 years ago on . Most recent reply

Help anaylize this deal..
I am looking into a 25 apartment unit. Here are the #s:
List Purchase price- $745,000
Down payment- $90,000
Gross Rent (with 5% less vacancy)- $171,420
Less Expenses- $82, 930 (46%)
Net Income- $88,490
Mortgage/Debt Service & 7.75%- $61,896
Net Cash Flow After Debt Service- $26,594
What would you offer on this deal to make it work for you??
It is getting close I think.
Thanks in advance
Most Popular Reply
Ken,
I won't question your assumptions, but 5% vacancy and NO capex seems very aggressive.
If, and a big IF, these are correct, your yield to equity is 28% ($27k / $90k)...which is good...and moreover your initial yield (or "going in" cap rate) is 11% ( $88k / $745k)...which is the sweet spot.
Pursue the deal.