Help me analyze this deal. Looking for my first investment prop.

[Dallas Easter]

View report

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

[Nick Peters]

Originally posted by @Corby Goade:

So much of this is market and investor specific. It could be that these numbers are fantastic in your market. Some utilities can be leined against the property, and it's different in every market. You should be paying those specific utilities and adjust your rents accordingly. 

Don't let anyone else tell you what is or is not a good deal. Do the numbers work for your personal financial situation and goals? Is this a good deal in your market? My guess is you already know the answers to these questions, and if you don't, find a mentor or a realtor who can help you get a solid understanding of your market so you will know immediately when you see a good one. 

Best of luck!

Although I agree with the general message that every deal is unique, I believe the whole point of this forum is specifically to advise BP members if those deals have potential or not. A loss-making, cash-bleeding property is rarely good for anyone..

Based on the report, he's buying a property for $200k that will generate $1,350 monthly income so we're already starting pretty low. Then even using low expense estimates (5% vacancy, 5% capex, 5% repair, no property management, etc), you cashflow $90 a month, for a 3% Coc and 5% cap rate. The IRR is not calculated by the model but it's probably not amazing either.

Overall, if I'm going to manage a tenant and leverage myself with debt, I would at least expect a decent return on investment, otherwise I would invest somewhere else. In this case, I'm not sure the property can make the cut at this price.