16.61%: Investor's Estimated Annual ROI (not including additional tax benefits)
$200,000: Total Initial Investment Required (may be split between investors)
$200,000: Total Initial Investment Required (may be split between investors)
Property:
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Area:
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Strategy:
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Deal Details:
Asking price: $575,000
NOI per seller: $47,800
CAP rate: 8.3
Actual NOI: $42,709
Offer based on 10 CAP: $427,090
Negotiated purchase price: $470,000 (based on significant upside)
Years 1 and 2 show lower cash flow as rents are increased.
Years 3, 4 and 5 have significantly higher cash flow.
Total estimated ROI for partners is 83.03%, for an estimated annual ROI of 16.61%.
Asking price: $575,000
NOI per seller: $47,800
CAP rate: 8.3
Actual NOI: $42,709
Offer based on 10 CAP: $427,090
Negotiated purchase price: $470,000 (based on significant upside)
Years 1 and 2 show lower cash flow as rents are increased.
Years 3, 4 and 5 have significantly higher cash flow.
Total estimated ROI for partners is 83.03%, for an estimated annual ROI of 16.61%.