First Deal Analysis in Jersey
Hello BP - looking for assistance in analyzing my first deal. I just put it through the rental calculator and BRRRR calculator and it does not look promising from a Cash on Cash return perspective. I'm wondering if SFR in my area based on taxes etc are just out of reach or if I am being too conservative in my numbers.
Currently approved for a Fannie May loan which buddles renovation into the purchase price.
3BR / 1BA SFR
List - $111k
ARV - $150k
Assumed purchase price - $80k
Reno - $17k-$20k
$14.5k down
$4.5k taxes
$55PMI
$6k closing
5% interest, 30 years, 1.2 points
$1,400/mon conservative rent projection. Would likely start at $1,600 but comfortable I could get $1,400.
Lender quote of expenses at $80k purchase price is $975-$1,000 month. When I account for vacancy, repairs, capex and prop management it pushes me into a flat or negative cash flow projection plus alot of upfront cash. Am I right to walk away or am I just too conservative on this one and hoping to land the perfect deal....
Thank you all