Evaluate this Deal

[Clint]

For Sale: 3 Duplexes, rent of $250.00 per month, 3 occupied. Just went through a major rehab on all; Price $75K.

Now how should I evalutate this?

Thanks,

Clint

[karlpie]

Do you mean 3 total duplexes (total of 6 units) or 3 of the 6 units?

[Clint]

3 Duplexes 6 Units, of which 3 of six are rented.

[REIaddicted]

3 Duplexes 6 Units, of which 3 of six are rented.

Here is a tool that I found on TCI under "my tools" hope it helps. You will need to sign up at http://www.thecreativeinvestor.com then go under "my tools"

ProForma-nator


This ProForma-nator will help you decide whether your Real Estate Investment is either worth while or something you need to pass on. Please fill out all of the information below and then click submit. Once the tool calculates the Debt Coverage Ratio, you will then be able to print it out and give it directly to your Banker to get the loan.


* Required
Appraisal or FMV $*
Purchase Price $*
Repair Costs $
Closing Costs $
Interest % *
Years Amortized ex. 20*

Expected Monthly Rent $/m *
Vacant Rate % OR Weeks *
Maintenance Rate % OR /m *

Monthly Association Dues
Annual Property Taxes *
Hazard Insurance *

Advertising $100 default
Water/Sewer
Electricity
Gas
Phone
Trash
Management Fees 10% default
Reserves 5% default

[REIaddicted]

also try using this formula

Look at the cap rate

All monthly total expenses (mortgage, insurance, taxes, lawn maintenance, 5% vacancy, 5% repairs, utils if tenants don't pay, any other expenses) x 12, divided by the purchase price, anything above a 9.5 is typically a good deal.

:SM006:

Lisa

[Dan Auito]

Lisa I stopped by TCI but couldn't find the ProForma-nator tool, could you con me in a little closer to where it can be found? Thanks, the mgmt! :~)

[REIaddicted]

Lisa I stopped by TCI but couldn't find the ProForma-nator tool, could you con me in a little closer to where it can be found? Thanks, the mgmt! :~)

This is after you are logged in.

http://www.thecreativeinvestor.com/

Click on
" my TCI" in the top Left corner

then click on " my tools" ( on my page it is the 2nd in the 2nd row)
Takes you to

http://www.thecreativeinvestor.com/modules.php?name=Tools
Under caculators it is the third free item down.

I use DH PC on that site and he has a paid membership. I don't have one there.
Hope it helps