Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 6 years ago on . Most recent reply

User Stats

17
Posts
4
Votes
Christopher Berggren
  • Pittsburgh, PA
4
Votes |
17
Posts

Help me analyze this deal - 4 unit with upsides!

Christopher Berggren
  • Pittsburgh, PA
Posted

View report

Hi there If you're an experienced Multi Family investor or Bigger Pockets analyzer, I'd like to hear from you with an explanation of some of the BRRRR numbers.  Doesn't have to be specific to this property but would like to know what YOU think are the most important numbers or ratios in analyzing a multi-family.  For example, do you look at the Gross Rent Multiplier (GRM)?  What are the two numbers under Debt Coverage Ratio?  Why is the ARV in the Financial Info less than the actual ARV?  Thanks in advance for your response!  

Most Popular Reply

User Stats

6,408
Posts
2,655
Votes
Brent Coombs
  • Investor
  • Cleveland, OH
2,655
Votes |
6,408
Posts
Brent Coombs
  • Investor
  • Cleveland, OH
Replied
Originally posted by @Christopher Berggren:

View report

Hi there If you're an experienced Multi Family investor or Bigger Pockets analyzer, I'd like to hear from you with an explanation of some of the BRRRR numbers.  Doesn't have to be specific to this property but would like to know what YOU think are the most important numbers or ratios in analyzing a multi-family.  For example, do you look at the Gross Rent Multiplier (GRM)?  What are the two numbers under Debt Coverage Ratio?  Why is the ARV in the Financial Info less than the actual ARV?  Thanks in advance for your response!  

Nice looking building (at first glance). Rather than GRM, many folk prefer the %/m gross return figure (In this case, 1.09%/m). Either way, those figures become useful when comparing deals against other deals. Get that?

My guess is the two numbers under debt coverage relate to 1: the first purchase loan, then 2: the refinanced loan.

Do you have a Lender who'll let you borrow 100% initially? (My guess is: no).

Next, do you have a Lender who'll refi an investment loan for 30 years fixed, at just 5% interest?

(If either of those figures prove to be not do-able, it could impact your monthly costs substantially!)

As for the ARV "based on Cap Rate", that's not appropriate. Please base your four-plex ARV on sold comps! Good luck...

Loading replies...