Help me see why this ISN'T a good deal Please!

[Joshua Kerner]

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

[James W.]

The cash on cash return is only 4.48%.  I want much stronger cash flow in our market.

The cap rate is low.  If cap rates go up, the value will go down. 

The DSCR is only 1.23 which does not meet commercial lending minimum guidelines.

If not using conventional financing (assumed conventional) you won't get a 30yr fixed rate.  Even with conventional, I think you will pay a little more now.

The 5% management figure is about half of what you will pay

Cap Ex and repairs totaling 5% is way too low.  I'd estimate 10% of so but it really is property specific.  Either way, the figure provided is low especially if renting to students.

I'm not too familiar with the calcs on here, but you will have vacancy and I do not see that factored in.

If the utilities are not actual, you will want to verify those but they seem a little low to me based on my experience

Based on what I see, I would not do the deal-even with your added info.  I guess it is up to you with what your goals are though.