Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

Should I Buy This $1.8M Real Estate Deal? #shorts

24 Aug 2021 · 1 min

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0:34

Mike Andes walks viewers through quick underwriting of a 10-unit multifamily property listed at $1.8M. He states a 25% down payment ($450,000), mentions monthly mortgage figures and the current rents for the 10 units (which he judges to be "dramatically under rented"), factors in property management costs, and considers whether raising rents could materially improve the cap rate.

Questions this video answers

$1.8 million

25%

$450,000

10 units

Chapters

Hey, everyone, it's 11:20. Running some numbers on a real estate deal. $1.8 million. The asking price be 25% down of 450,000. There's my monthly mortgage payment, right? Here's what the monthly income is currently. Here's all the rents for the 10 units. I feel like it's dramatically under rented. I could definitely raise these rents somewhere in between this ballparker and bring in a much better cap rate. Right now, though, not much meat on the bone between the monthly income and what's here. Plus, I have to pay, obviously, the property management. On top of that. Running the numbers on the whiteboard, doing the math here. Let's see if this deal works. What do you think?