Working on getting my numbers right! any feedback helps!

[David Martinez]

Hey BP, I'm a novice investor just getting started in RE. I have been trying to analyze deals and here are my numbers on this property at 225 S Stapley Dr in Mesa, Arizona (commercial multifamily). Really if anyone could give me feedback to make sure my numbers are correct (as I'm guesstimating on some numbers) that would be amazing! I am trying to analyze at least 3 deals a day to 1. get the hang of doing the numbers and doing them RIGHT 2. Hopefully finding my first deal so I might be able to partner with an investor if I do indeed find a deal.

Units:  28

Price: $1,680,000

Cap Rate: Not stated in page

NOI: Not stated in page

So to start off I would imagine an investor putting 20% down (use leverage to my advantage for a bigger ROI) so,

$1,680,000 x .20= $336,000 down payment

To figure out the NOI I used the zillow rentals app and found that in the area around this property rents are going between $900 to $1,200 (decided to use $1000 as rent per unit)

$1000 rent per unit x 28 units = $28000/month x 12/months = $336000/yr GSI

To get the NOI i figure that normally expenses would be between 40% to 45% (guesstimating as best I can) so i used 43%.

$336000 x .43 percent = $144,480 NOI

From here I went back to the amount that would be borrowed from the bank with a 20% down payment which is $1,344,000. On that amount borrowed from the bank I figure maybe 8% interest (not sure on current rates) so it would amount to $1,344,000 x .08 percent = $107,520/year.

In conclusion subtracting $107,520 yearly payment from the $144,000 NOI would get

$144,000 - $107,520 = $36,480 profit.

which in turn on the $336,000 down payment would yield a ROI of

$36,480/ $336000 = .01085 or about 10.8%.

This is one of my first properties that I have analyzed but want to make sure that I am doing them in the correct way, so any input you guys could give me would be great! Have a wonderful day everyone!