How much for a rehab?

[John D.]

Okay so I have a co-op under contract 2 bed 1 bath. I plan in rehabbing and living in apartment for one year and then moving and using it as a rental income. ( allowed after one year with a $150 sublease fee) here are the numbers..purchase 206,500...20% down payment. Principle and interest are roughly $790 HOA FEES $705 not including electric

$1650 cost per month and rents in area are going for 1900-2200 for 2 bedrooms.

1) your thoughts on this deal

2) how much money should I put

Into the rehab to keep this a good investment

*apartment bones are good planning on painting and redoing existing hardwood floors but don’t want to over rehab a rental

[J Scott]

It looks like you're missing a whole bunch of costs in your analysis. You don't have anything factored in for vacancy, maintenance, capex, or turnover.

When all is said and done, you could be cash flow negative on this deal, especially if your rents fall at the lower end of that range.

As a rental deal, this does not seem very good to me. But, you need to ask yourself what your goals are and then determine if this property meets those goals or not.