[Calc Review] Help me analyze this deal

[Monique Driver]

I ran an analysis on a duplex I am interested in after watching Brandon's latest training on how to use the calculator. I feel like these numbers are whacky and I'm doing something wrong but not sure what. Is anyone able to take a look? The property is updated so no repairs needed. View report

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

[Mark Hughes]

Seems like your paying ‘retail prices’. Ie why pay $172k for something worth $169k. Look at typical real estate stats in the area w your real estate agent to find out what percentage of list price properties typically sell for (ie 95% of list?). Always strive for buying at a discount when possible. But this is why it’s projecting negative cash flow the first year. Also, as part of the offer you want to ask for all financials/rent rolls and leases this way you can look into the current leases (are they month to month? Are they all expiring the same time? What type of security deposits/pets/pet fees? My experience tells me if you project negative cash flow it’s not such an attractive deal and you might be overpaying, unless it’s more of a value play for long term appreciation. Why not try the numbers at lower offer prices to experiment with the numbers you want/need and figure out the most you are willing to pay for it.

Also, you did not factor your expenses will increase at all so that’s why your COC% go so much higher in future years. I would forecast at least a 1% increase. (Taxes will go up, maintenance costs, insurance, etc).

Does it really need $0 initial repairs? Hard to believe it’s perfect....I normally count on at least $500 or $1000 as a base - something always comes up.