2/1 Deal Analysis (First time investor)
First time investor here looking for some input on a SFR buy and hold property. I am looking to use the BRRR strategy on this property. I am using private money to fund the deal and would repay once the refinance portion is in place.
2 Bed/1 Bath
Offered: $21,000 all cash, no inspection contingency
Closing Costs: $1,500
Taxes Current Year: $1,800
Needed rehabs(Estimated):
- Fix grade issue $300
- Demo and remove patio $500
- Demo and remove moldy drywall in basement $150
- Repair basement cracks/seal/paint $500
- Dehumidifier $300
- Paint interior $300
- Paint Exterior $200
- Add/repair downspouts $500
- Replace boiler $3,000
- Replace siding on carport $400
- MISC Electrical $350
- MISC/Oversights $1,000
TOTAL Rehabs: $7,500
ALL IN TOTAL: $31,800
Comparables in the area are around 45k-48k on average. Some upwards of 56k. Market rent is conservatively $750/month but I would likely target a rent of $800/month. A craigslist search turns up many "renovated" 2/1 houses at $800-$825/month rent. After getting unit rented and refinanced, here are how the numbers should shake out:
Looks to be about $158 cash flow per month. However, as stated, I would target an $800/month rent and I would also manage the property myself so the numbers should look even better.
Thoughts?