All Forum Posts by: Antonio Pican

@Joel O'Leary thank you for the information. Can you please send me the calculator?

@David Acosta that makes perfect sense. So the goal is not just to sit back and pay the mortgage and wait X amount of years to build equity and keep paying interest even though your making only 12k hard a year. But to do what you said and make the NOI go up. Because if I put 120k down (entire capital I have) I need to be able to get that entire money back quickly to make another investment correct?

Thank You.

Hi Joel,

Yes I am just worried about the percentage and if it is wise to put down that down payment and pay a mortgage and still make a little but would that tie me up to make further investments? I wouldn't have another hefty down payment like that for another little bit. Unless lenders would let me get another using equity from this one? But I suppose that is how it works? The calculations were based on all expenses such as vacancy, management and maintenance costs. They have it listed it at 600k with the gross at 81k and NOI 51k, but I did some of my own calcs.

I definitely can use your suggested calculator and share the results so you can give me a better opinion.

Thank you for the help! 

If I buy a multifamily property at 600k with 20% down and finance the rest at say 6%..after running numbers my cap rate comes out to about 8% and cash on cash return at about 43% (its 12 units at approx 575 monthly rent income, and the report shows 30k a year in expenses and 80k in gross. My concern though is using my net profit to pay the mortgage obviously and end up with about only 12k hard cash in my hand. But am I missing the point that I am building equity in the property with financing (paying payments) or making improvements to the property to raise rent and to be able to build wealth like that?

Thank you in advance for the clarification.