Real Estate Deal Analysis & Advice
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated almost 4 years ago, 02/22/2021
Feedback Needed on Deal Analysis
I’m a small time investor in the Midwest (currently own 12 units) looking for a feedback on a potential deal.
Key Numbers:
Total Units - 4
Purchase Price - $220,000
Monthly Rental Income - $2200 ($550 for each unit buy my market analysis is closer to $600)
Mortgage - 15% down at 4.0% (5 Year ARM)
Projected Monthly Cash Flow (factoring in the increase in rent to $600) - $600
Cash on Cash ROI - 20%
It seems like a no brainer but it would likely make it the highest purchase in the area (with other similar 4plexes), with $210K being the next closest comp. Plan is to hold it long term so not necessarily worried about market fluctuations over the next 5-10 years, but it scares me that I’m paying above everything else in the area. Am I overthinking this?