Real Estate Deal Analysis & Advice
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by

1031 Exchanges
presented by

Real Estate Classifieds
Reviews & Feedback
Updated almost 5 years ago on . Most recent reply

Deal Analysis - ROI Vs Cashflow
New to this, will appreciate your valuable input.
I'm looking at 2 deals: first is a 5plex and the other, a pack of 10 SFH. After my calculations (using biggerpockets rental cal); 5 plex yield a ROI of 14.45% with monthly cashflow of $582. The pack of 10SFH yields a ROI of 32.63% but cashflow is $1,734. They all meet the 1% rule/test
Brandon (from BP) teaches that for a SFH make sure each unit produces a cash flow of at least $200, and for MFH $100 per month. While the ROI is higher for the 10SFH deal, it doesn't meet this "rule". How would you analyze this, what deal will you go for?
Thanks much!