All Forum Posts by: Will Boedeker

Thank you. 

Thank you. 

@Alecia Loveless. It is absolutely frustrating when the data is old or simply incorrect and aggravates the analysis process when crunching numbers and trying to make a good, sound decision.  I actually found a single-family rental with no available comps in the same zipcode! I had to move on.

Thanks for all the replies. I ended up finding and making an offer on a different duplex with a 15.75% Cash on Cash/ROI and my offer was accepted. While waiting on the seller to accept my offer I stumbled on a triplex with crazy Cash on Cash/ROI returns.
The property analysis came back with CoC/ROI returns north of 20%. I need to let the dust settle on the first property before moving on to the next property.

Evan.

Thank you for the comments and especially for pointing out the calculator vs neighborhood/street disconnect.  I failed to mention that the subject property did have burglar bars on the doors, windows, and also the yard itself...which began at the sidewalk. In hindsight, I did appreciate that the seller made the effort to match the burglar bars protecting the yard with those on the doors and windows. This is definitely not the kind of neighborhood I would feel safe in at night.  

Thanks, Blair.

Update. This investment opportunity did not pan out for me and I had to pull my offer due to some red flags that popped up. I did a drive-by of the property after submitting an offer but before the seller responded to it. I discovered that the duplex was located in a pretty sketchy neighborhood and I had no confidence that the property could deliver on the proposed rental income the seller said it was bringing in. Yes, I consulted the BP rent estimator and Rentometer tools to make sure but something was off for me. The first flag was that only one unit was tenant-occupied, the second unit has been vacant for over two months.  Secondly, once I found the duplex, I simply realized that I did not want to leave the feeling of security my car was giving me. This is a rough neighborhood.  Call me overly cautious but for my first multifamily venture, I can do without the uneasy feeling in my gut. Back to the drawing board.

I just submitted an offer for my first multifamily, a duplex in Houston, TX, and used the rental tool to generate the following stats. Waiting on the seller to accept my offer. 

Looking forward to this meeting.