Deal Abstract
https://www.loopnet.com/Listing/65-Russo-St-Providence-RI/35918333/
More sensible 6plex is being sold in Providence. Asking about numbers and understanding expense ratios next.
Part 1. The Basics
Question | Notes |
---|---|
1. Property Name: | 65 Russo |
2. Property Full Address: | 65 Russo St, Providence RI, 02904 |
3. Property Listing URL: | https://www.loopnet.com/Listing/65-Russo-St-Providence-RI/35918333/ |
4. Property Year Built: | 1910 |
5. Property Number of Units/Doors: | 6 |
Part 2. Quantitative, Numbers, and Financials ("Sow Passion, Not easy mediocrity", or S2 P6 N18)
Criteria | Amount/Comment |
---|---|
1. Link to Underwriting Google Sheet: | https://docs.google.com/spreadsheets/d/1dBjnn5TYNxmbfoI_vUsqsBZ9bpfykuztFncpupp4DUg/edit?usp=sharing: UNDERWRITING COMMENT |
2. Asking Price: | $725000: PRICE COMMENT |
3. FFEIC Median Income: | $62871: INCOME COMMENT |
4. Last Year's Annual Rent: | $96600: RENT COMMENT |
5. Last Year's Annual Expense: | $-33287: EXPENSE COMMENT |
6. Last Year's Net Operating Income (NOI): | $53653: NOI COMMENT |
7. 5 Year Internal Rate of Return (IRR): | 7.45: IRR COMMENT |
8. Yearly Cash on Cash (CoC) Rate of Return: | 4.3: COC COMMENT |
9. Debt Service Coverage Ratio (DSCR): | 1.31: DSCR COMMENT |
Part 3. Qualitative, Pre-Mortem, and Investor Fit (Every Time Man Profits, Don't Dismiss Serendipity)
Question | Score | Notes |
---|---|---|
1. Why is the seller now? | TIMING SCORE | TBD |
2. Am I the right buyer for this deal? | FIT SCORE | More sensibly priced than the other 6 plex, but again, curious to see the numbers. I own 2 sixplexes so I am very familiar operating these properties. |
3. What has to go right for this deal to work out? | Right Rating | |
4. People? | ||
5. Distribution? | ||
6. Durability? | ||
7. Secret? |
What has to go right for the startup to return money on investment:
1. Why are property taxes so high; 2. Renovation costs need to be accurate; 3. Rents have to go up
What the Risks Are
1. Insurance is going up and I know because my properties are all being squeezed;
Bonus Muhan's Notes
Updates
This is where I’ll post updates about the company. This way all my notes from offering to post-offering updates will be on one page.
Review these deal memos every time the startup raises a new round
Test if original thesis still applies
Notice trends in how you think

So, did I invest?
Click here to find out.Other thoughts, questions, comments, or concerns? Write me at mail@muhanzhang.com and let me know.