Is this deal worth it? - Posted by Brian

Posted by alan on July 14, 2002 at 22:51:57:

So, if the above is NOT a deal, what is a deal? It appears to me that IF they would get full rent, owner would be +200 per month plus the tax deductions. What else is “required” to be a “deal”?


Is this deal worth it? - Posted by Brian

Posted by Brian on July 12, 2002 at 17:20:30:

I’m a newbie and could use some help analyzing this deal.

It is a duplex outside Orlando, in good shape, appraised at 120K, for sale for 109K.

Rents are $1350 and payment would be $1100 with 10K down.

Is this worth pursuing? I don’t have the 10K but am willing to hunt it down if it seems to most to be worthwhile.

Any ideas out there on acquiring the 10K for the down at closing?

Thanks for your help


Re: Is this deal worth it? - Posted by Ed Garcia

Posted by Ed Garcia on July 13, 2002 at 11:51:38:


Where’s the beef?

As a rule of thumb, take your market rents and multiply them by .75 or 75%.

Example: $1350 X .75 = $1012. What we’re doing is taking 75% of our market rents and disregarding the other 25% because of taxes, insurance, expenses, and vacancy.

With this formula you’re upside down or negative cash flowing $88 per month.

Not a deal,

Ed Garcia