[Calc Review] PLEASE HELP ME analyze this deal
Hello
I am a newbie. I would like to enter into the student housing market in Petersburg, Va. I found a property that I believe will suite my needs. Its a duplex in a historic district. One unit is better than the other which I believe will need the majority of the renovation work. I put these numbers in and trying to see if this deal is good.
The property is currently listed for $130K but heading for auction. I thought I could offer $85K and depending on the inspection see if there would be anything unexpected that may eat away my rehab budget.
I have about $60K cash to invest if I need to but want to use a HML to finance this purchase and renovations. I dont have an accurate rehab estimate (had two contractors see the property and one gave a blanket estimate of $150K). I did estimate the ARV along the conservative side compared to the comps in the area that have been sold in the 6-12 months and are the square footage, lot size, bedrooms etc.
Btw there are 4br/2 full bath in each unit. I wanted to add a bathroom to each unit and update the kitchen and existing baths. Roof needs to be done (possibly) as well as siding (checking to see if this property is considered a historic building - which could increase cost of exterior repairs).
Based on surrounding student housing rents. I want to rent out 6 bedrooms for $900 each and one bedroom for $725 (significantly smaller). I also have a room that could potentially rent out for storage for an additional $25/month for up to 4 people ($100/month).
I will cover utilities up to a budgeted amount of ~$1500-$2000 a month as well as water and wifi. (Am I making the right decision here? College students would want utilities included and wifi is a must of course)
ANY FEEDBACK WOULD BE GREATLY APPRECIATED
*This link comes directly from our calculators, based on information input by the member who posted.