All Forum Posts by: Sergio Alvarez

I'm not a great source as I haven't actually gotten in the game yet, but from what I've learned that cap rate is pretty abysmal. The chart you provided is a bit hard to read but am I correct in assuming that it is not fitted with those appliances and you're accounting for their cost? Or are you preparing for their replacement?

Hi Craig,

My apologies for the quality of the image and you are right the cap rate was incorrect due to an error on the formul. I have made the changes and currently just running the numbers on several properties to see which one is a good fit. Thanks again for your help.

-Sergio

0 Votes

Originally posted by @Mike McCarthy:

You missed the roofing aspect of the CapEx. (minor, but a little something)

$700/mo cashflow looks good to me. The 8% CoC return is reasonable... not great, but not bad.

Overall, looks like a decent deal to me. Some wouldn't settle for it, but it would fall into my selection criteria.

Thanks Mike for taking a look at the deal and since then I have made some changes as my cap rate formula was wrong. The HOA covers the roof and the exterior paint so I did not included as part of the CAPx. Two months earlier they sold a similar unit in the same complex for $352k which would have been fantastic opportunity. The only drawback is the limited amount we can raise rents in this area.

0 Votes

HI BP's,

First time poster and need your help analyzing this deal since I have been running some numbers on different properties. Not sure what is your take on this deal? Am I missing any other expenses that I am not taking into account? The market in our area is a seller's market and properties like these don't last more than a day or two.

0 Votes

All Forum Posts by: Sergio Alvarez

Sergio Alvarez has started 1 posts and replied 3 times.

Post: Newbie - What am I missing???

Post: Newbie - What am I missing???

Post: Newbie - What am I missing???