I have a question on a property I am seriously considering.
Purchase price would come out to $180,000 ARV would be $195,000 with $10,000 Reno.
Its a 2 unit property and would bring in $1,900.
Monthly expenses come out to $1,385.63 with a cash flow of $514.37.
$46,000.00TOTAL INITIAL EQUITY
7.89GROSS RENT MULTIPLIER
1.81 / 1.70DEBT COVERAGE RATIO
I believe this is a good deal but lost on the rules...
If I were you, I would try to get the property at a lower price. There isn't a big gap between the current price and the ARV. For our properties, we always keep our rents at least 1% of our ARV's.
Try to keep as little equity out of the property, by refinancing or using other peoples cash for the downpayment.
Happy Holidays & Happy Investing!