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Updated over 6 years ago on . Most recent reply

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Christopher Berggren
  • Pittsburgh, PA
4
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Help me analyze this deal - 4 unit with upsides!

Christopher Berggren
  • Pittsburgh, PA
Posted

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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!  

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Brent Coombs
  • Investor
  • Cleveland, OH
2,655
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Brent Coombs
  • Investor
  • Cleveland, OH
Replied
Originally posted by @Christopher Berggren:

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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...

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