Opinion on analyzing this house

[Brad Haughton]

I like to know your opinion on this deal analyzation the numbers may not be accurate just random numbers I thought that might work.

[Randall Alan]

First off... "Random numbers that might work" is your first problem.  Sure, you can do a pro-forma calculation... but without somewhat solid numbers, you are really guessing!  Not a good way to approach the situation.  

Your interest rate is probably low for an investment property.  You are usually going to be paying 1 -1.5% above residential rates.  You need to include closing costs.  If you are having it managed, they usually charge 8% where I'm at... you look like you were using 3%

Have you accounted for building insurance anywhere? Any regularly recurring expense is going to take your NOI down. I would guess you are looking at least $3-4,000 a year on insurance. (just a guess).. but that is a 10% hit to cash flow. Are there permitting fees, yearly inspection fees, etc?

I own over 40 units, but I've only done one flip - but made $50k on it... so while I am not an expert on the rehab costs of this big of a job... my gut tells me that if this is your first deal... you might want to start of with a more conservative project.  This one is MAJOR!  A multi-story 1898 house could need SOOOoooo much... new electrical, new plumbing, obviously all the interior walls, etc.  You would need to get accurate quotes before you could even start to figure out what you are looking at rehab wise... which totally drives the profitability of this deal.  Something closer to turn-key would be better to get your feet wet if you are a new investor.

  Looking at the pictures, it looks like the seller started to rehab this property and it is now on the market.  That could be a bad sign... ie either they ran out of money, or figured out it was getting too expensive, or hit something that was a deal breaker.  All signs you need a lot of input from qualified contractors, etc.  

All the Best!

Randy