Analyzation of a Deal

[Riley A Holzmeyer]

I am currently in the early learning stages of getting my numbers correct when evaluating a property. I plan on having my first property owned this fall. I want to do an FHA House Hack and I got pre approved for some FHA loan numbers and the percentages and numbers used are ones that I qualified for so I could find better or even worse when actually purchasing. This is one that has been on the market for over 100 days, this is my first deal so I have not tried any cold calling or off market strategies, but I am just learning and would like some feedback on if my numbers are anywhere accurate. One thing that has given me trouble is dealing with utilities. I would say it would be best for it to just be tenant responsibility, but if I am targeting college students in the college town of Murray. Most students tend to take what is easiest so they usually prefer a flat monthly rate. So either it would be their responsibility or there would be a flat base rate then I would charge them overages if they exceed that amount. This seems to be the hardest thing to decide so I would greatly appreciate some advice in this area specifically. If anything needs to be changed or added please let me know. Do not hold back all the suggestions are greatly appreciated.

Thanks in advance!

[Michael Ealy]

Your maintenance number is too low. Double it for student housing (5% to 10%).

Also, don't include the utilities with the rent. They have to pay for that separately so they don't abuse it.

Can you negotiate further on the price? If it's listed for 100 days at that price, there's a reason it's not selling.

Lastly, have you inspected the property? If it needs repairs you have to deduct that from the price and add that to your downpayment.