[Calc Review] Help me analyze this deal

[Seth Matherne]

View report

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

[Michael A.]

@Seth Matherne My opinion won't be worth much here, but I'd take this deal if I were comfortable with everything this report doesn't tell me (area, market rate for rents, demographics, etc.). A 17% ROI is great in my current market. I lean on this more than cap rate if I am not able to compare multiple purchase options. Your cash put into a mutual fund will on average net you 8% ROI per year when averaged out over time. This is obviously a seemingly better deal.

A few questions for you to maybe consider: How do you feel about owning a building like this? What condition is it in now? Are your maintenance and CapEx figures reasonable given the building condition? Too high or too low? Have you gotten a real insurance quote from an agent? Your closing costs look to be about a third of what they are at any bank in my market so I would make sure you've been quoted that from a lender if you have not already.

Thanks a lot for sharing - good to see what other people are finding out there.