90 Days Challenge. Day 9. Please help me to analyze this property

5 Replies

90 Days Challenge. Day 1. Please help me to analyze this property


I am new to REI and I am trying to learn how to find the best deal in the market. This deal is located in NW Indiana numbers are roughly estimated, I am planning to buy my first rental property with FHA loan, live there for one year, then move out and rent it out. I appreciate any feedback.

Thank you

@Artem Shum what type of property is it? Single family or multi family? Do yo plan to live in one unit and rent other? if that's the case looks like a good deal because you will be able to rent the second unit after 1 year once you move out and you will have a very good cash flow. If its SFH it has a negative cash flow which is not desirable

@Artem Shum For a single-family house-hack, the scenario you care most about is after the first year, once you've put a tenant in. Those are the financials you need to analyze.

The spreadsheet you've provided is far too generic. For example, I hope you won't be providing utilities for your tenant, so those expenses wouldn't appear here. But, if you do plan to cover them, you'll need to know the actual numbers: placeholder numbers here defeat the purpose of doing an analysis.

You should be able to determine, for your market, what actual closing costs and finance fees will be for a closing like this. Other investors, closing agents, and mortgage brokers should be able to help.

I'd also suggest you reconsider purchasing 4 bedroom houses with just one bathroom. That's a recipe for high turnover. After all, how long do you imagine 3 - 6 people will tolerate sharing one toilet?

Ultimately, though, as @Shiloh Cunningham and @Varun Talluri both point out, this is a negative cash flow situation, as it stands.

I don't see a deal here.

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