[Calc Review] Help me analyze this deal

[Hanul Oh]

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

[Guifre Mora]

Originally posted by @Hanul Oh:

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

Hanul, you have no financing in the analysis. So I assuming its a cash offer. As it stands the ROI is ok.

Let me break this down and give a different perspective:

If you were to finance it with a 30% downpayment 5% interest (doable) over 30 years - you could purchase 3 properties under the same conditions. For an ROI of 9.6% vs a single ROI of 7.6%. Thas an extra 2% ROI per property or extra $217 for 3. 

Your money would go much farther and you would also minimize your risk. 

1 asset with an 82K investment will be recovered in 12 years.

3 assets with a combined 82K investment will be recovered in 10 years. (rate 5% 10 years, 4% 9 years) 

The power of leverage.