New investor light BRRRR analysis on foreclosure
Let me start by saying I'm new to this and am simply looking for thoughts and pointers on this "deal" I put together using the BP BRRRR calculator. This property isn't actually for sale right now, I'm just using it for practice using the calcs and analyzing deals.
I'm looking at potentially purchasing with cash up front and then cash out refinancing after to pull some money back out. The property is a 3 bed 1 bath SFR foreclosure with about 73k unpaid balance listed, so I just made the purchase price 73k. Market value guesstimation (based on Zillow) is 124k. Cash on cash ROI seems strong at over 19% with monthly cash flow just under $200. It's in an older but decent part of town. What I'm most curious about is if I'm putting aside enough money for PM, repairs, capex, etc., or am I coming up shy on anything. I don't know what the inside of the property looks like, but I'm also wondering if 5k is not enough to plan for any initial repairs that may need to be done prior to renting.
Looking forward to hearing what everyone thinks. All feedback welcome.
https://www.biggerpockets.com/...
Thanks,