[Calc Review] Help me analyze this deal

[Ari Bildner]

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[Jim Goebel]

@Ari Bildner

Challenging the assumptions regarding property appreciation and rent appreciation here I think would be apt.  This will largely depend of course on the actual state of the property and the types of tenants you can get there.  I've seen way to many multi family properties just get into that death spiral of a slum lord and horrible tenants and it's just one band aid after another until finally the owner extracts whatever they can and exits.

I personally would want to be buying something at a little lower price, perhaps redeveloping, etc.

Build value rather than extract value.

If the assumptions above mentioned check out and you're happy with those returns I don't see a major hurdle ----  big however though is that you're only outperforming your cost of capital by maybe a percentage point?