Numbers Game for "Deals"
So, I have been analyzing "Deals" from wholesalers/MLS/fb groups but so far none of the numbers even come close to the 1% rule or the 70%ARV rule that everyone talks about.
I am from the DFW area and wanted to run numbers here for any numbers enthusiasts to tell me if I am doing anything wrong while running these numbers or the "Deals" are really that bad. My strategy is BRRRR.
This is the one that I analyzed today:
PP- 161,200
Rehab - 40,000 (Conservative)
Total cash needed - 201,200
ARV - 210,000 (conservative could reach 225,000)
Loan amount - 168,000 (80%)
Cash invested - 33,200
Estimated monthly rent - 1650
Fixed costs:
Mortgage- 766 (30 years at 3.625 with 80% of arv)
Insurance- 100
Tax- 481 - based on 2.75% of arv (texas)
Variable costs:
Vacancy at 5% - 83
Capex - 83
Opex - 83
Total costs - $1596
Monthly cash flow - $54
CoC return - 2%..
Please tell me if you use something similar? Also would love to see something similar for your cash flowing property that has atleast an 8% COC, along with your market information.