Deal Analysis - Fourplex in KC

[Lawrence H.]

Hi BP family,

Just got my first investment under contract in KC and super excited! Wanted to run the numbers with you guys to double check I'm not missing anything. It's a fourplex in the Ivanhoe Northeast area... a bit of an up and comer but some similar homes in the $280 - 340k ARV range. It's made up of two 2 bed 1 bath and 2 1 bed 1 bath.

$170k purchase price + $55k rehab = $225k. With hard money lending fees, holding costs, closing costs, refi fees, penciling to around $245k. With a $280k - $340k ARV, we're coming out anywhere between 86% ARV to 70% ARV when we refi (will likely not get a perfect BRRR unless we hit the high end of the ARV range).

After rehab, the rents seem to fall anywhere from an average of $700 - 800 a room... pointing to around $2,800 - $3,200 a month, getting us close to a 1% rule depending on ARV. With a rent of $2,800 to be conservative, we're thinking around $252 / month for property manager, mortgage of $1.1k off a 5-6% commercial loan, insurance of $115 a month, taxes of 1.1% or $257 a month, and maintenance of around $115 a month (may be high since we'll rehab it). This is giving us around $1k a month off of the 4 units.

Would love for you guys to beat my numbers and assumptions up on this. Anything I'm missing? Does this sound like a good deal to you?

Best,

Lawrence