[Calc Review] Help me analyze this deal
*This link comes directly from our calculators, based on information input by the member who posted.
The only numbers that concern me are your projected rehab of $40k (seems low, but I don’t know the exact conditions of the house) and the projected interest rate of 4% on the refinance. I would talk to a lender, can connect you with David Greene’s The One Brokerage if you want. I am in the process of buying my first str and rates are closer to 6.5% for investment properties. Also when you refi, banks are sometimes conservative on their appraisals, so I’d be conservative on those numbers. Hope this helps.
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Real Estate Agent California (#02166235)
- The David Greene Team
- 310-720-1057
- [email protected]
Have you spoken with contractors on the budget and time frame? Are there near by comps that support the $680k ARV? Checked out the location in person yet? I agree with Robert above the rates for rentals are no longer 4% more like 6-6.5%. So make sure that still cash flows. Does this say your purchasing in cash? Well I put so much cash down to refi, I believe it would be best to spread the down payment into multiple projects
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Lender
- (919) 321-1156
- https://micromanagemortgage.com
- [email protected]
@Juan Ledesma cash out refi limited to 75% of ARV or 510k. Won't find property manager for 5%. More likely 10-12%. Won't get a loan without insurance. Taxes will go up to around $500 a month. You will end up feeding this property close to $2000 per month out of your own pocket. Hope you have a good job.
Quote from @Robert Reynolds:
The only numbers that concern me are your projected rehab of $40k (seems low, but I don’t know the exact conditions of the house) and the projected interest rate of 4% on the refinance. I would talk to a lender, can connect you with David Greene’s The One Brokerage if you want. I am in the process of buying my first str and rates are closer to 6.5% for investment properties. Also when you refi, banks are sometimes conservative on their appraisals, so I’d be conservative on those numbers. Hope this helps.
Appreciate it I was just throwing out a rough estimate of how a deal would sort of look like, Ive been experimenting with the tools provided by bigger pockets and learning as I go. Appreciate all the help!
Quote from @Alex Hunt:
Have you spoken with contractors on the budget and time frame? Are there near by comps that support the $680k ARV? Checked out the location in person yet? I agree with Robert above the rates for rentals are no longer 4% more like 6-6.5%. So make sure that still cash flows. Does this say your purchasing in cash? Well I put so much cash down to refi, I believe it would be best to spread the down payment into multiple projects
It's a property on my backyard market and I was just running some numbers, I wasn't to sure on my estimates which is why I posted for any feedback, thank you I appreciate the tips!