All Forum Posts by: Nick Ruffini

@Jeremy Nault thanks!

Thanks @Tanner Sherman! I got the insurance quote back today and it came back lower than expected ($76/mo.) which is good. I reposted the deal with those numbers to get more feedback and also learned that I can probably get an additional $75-$100/mo for each unit (although I'm still running the deal at the lower numbers provided by the current owner)

Hey all, I'm looking at a duplex and I'm crunching the numbers. They look decent (COC return is lower than I'd like) but would love any feedback.

Thanks for taking a look!

Rental income: $1600

Expenses:

Taxes: 319.41
Ins: 79.16
Water/Sewage:
Garbage: 
Electric:
Gas:
HOA fees:
Lawn/Snow:
Vacancy: 100
Repairs: 150
CapEx: 100
Prop Mgmt: 160
Mortgage: 536

Total Expenses: $1,444.57
Rental income: $1.600**
Difference: +$155.43 (Monthly Cashflow**)

Down Payment: $29,000 (20%)
Closing Costs: $5,000
Rehab: $5,000
Total Investment: $39,000

Cash on Cash return: 4.78%**

**Note: Current market rates look like I could charge another $75-$100/mo for each unit, raising my cash flow and creating a COC return of 9.39%-10.93% respectively

Hey all, I'm looking at a duplex to purchase as a rental property. 

Purchase price: $144,900 -  $29,000 down (20%).

I've attached the numbers I put on paper and would love to hear your feedback. Thanks!

Nick

Thanks everyone, I appreciate it!

hi @Mark Boutin - thanks your willingness to help. I spoke with the person who is running the deal and that's the info he gave me: 

$2,600,000 Offering Size

50,000 Minimum Investment

18.5%Target IRR

2x Multiple

So, if I invest $50K I can expect $100K back. I understand that, but was trying to understand the IRR in more detail. Maybe I'm not asking the right question, but I'm just trying to get a better understanding of the overall return and the IRR is a bit confusing to me.

Hi All,

I'm looking to get involved with a deal that is a $50K investment, 18.5% IRR, 2X multiple and a 4-5 year hold. How can I calculate the what the total return would be?

Thanks!

@Mace Moseley Totally disagree. If you want to be taken seriously, be professional. Your age has NOTHING to do with it and don’t let anyone tell you otherwise. Get that negative self talk out of your head.

Hi All,

I'm trying to get a better idea of IRR. I'm not trying to figure out how IRR is calculated, but I'm looking to understand what that means in terms of returns.

For example, I had a conversation with someone yesterday who said they held a property for 5 years and the investors received an IRR of 18%. Does this mean that taking cashflow + proceeds from the sale equal 18% TOTAL returns on cash invested or 18% per year?

For example, If I invested $30K, after 5 years would that $30K be $68,632.73 (18% Annually) or $35,400 (30,000 X 18%)

Does this make sense? Basically, I want to try to calculate how much I invest and what the returns would be in dollars and cents. 

Thanks!

Great - thanks, everyone! Much Appreciated.