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Updated over 6 years ago on . Most recent reply
[Calc Review] Help me analyze this deal
Working through an analysis of a 3br/2ba duplex for sale in Conway, AR. I can't get to a positive cashflow estimate without dropping the price from asking, $184.900, to around $110,000. The report link here is for the asking price.
Can anyone see any obvious flows in my assumptions? Any advice greatly appreciated.
*This link comes directly from our calculators, based on information input by the member who posted.
Most Popular Reply
@Regen Place That's good feedback. I'll get a better estimate from an insurance company. Also, Alexander points out my repair costs are probably high. Thank you for the feedback!
@Alexander Wardell Thanks for the comment. I was seeing 6% to 8% cap rates on other properties in the area but I'm thinking that was biased high. Probably a 5% or 6% is more reasonable. The units are fairly new - 2012 - so costs are likely not as high as I'm estimating as you and Regen point out. As far as the rents, I was looking at comparable size units rents in complexes that have additional amenities (club house, pool, workout rooms) and discounted it a little to be conservative. I'm trying to get more information on what the current rents are and the quality of the current tenants.
Getting better numbers in the areas you both pointed out will help value the deal more appropriately. Thank you for the feedback!