[Calc Review] Help me analyze this deal

7 Replies

@Kevin Sobilo I did owner finance, I gave home $8,000 down on a $105,000 purchase price but we ran the financing at $97,000 with 0 down amortized over 15 years on the books. I will hold this property for a long time so I will most likely BRRRR this because the ARV is around $180,000.

@Christopher Madden , Excellent! Those are great terms for the financing, especially in this environment where rates are rising.

Looks like a good deal, although the cash-flow will likely be a little lower because I didn't see items like vacancy or maintenance accounted for. Even still, it should cash-flow and you will make out well with the equity as well.

Christopher

Looks like a great candidate for a BRRRR to me to pull you initial investment back out to move to another project if you choose to do so. The terms you secured are pretty awesome also so it's kind of a toss up depending on what you choose to do.

As @Kevin Sobilo said you may want to calculate for vacancy and maintenance. I didn't see a plan for you for property management, You may also want to calculate for capital expenditures that will be needed down the line. 

Last, I saw you had yourself paying for water and sewer, is this an expense that you can pass on to the tenant?

Best of luck.

Andrew  

This will be a brrrr property i am a few weeks way from getting it apprised and pulling money back out.  All bills including water and sewer will be paid by tenant but because its been vacant as I rehabbed it they are my bills.  There will be little maintenance because this is almost a complete gut but I factor vacancy, cap ex and maintenance after i see the numbers.  Already have a few people interested in renting it at the $1500 mark so it will be a win and hoping to pull enough out of it to go directly into another deal.  thanks for the input and feedback

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