[Calc Review] Help me analyze this deal
Good evening, all, would like a little help on this deal. Haven't started it just doing the numbers. for me it seems like a great deal. Of course, there could be more profits if i had a partner to help with a downpayment.
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I would speak with a lender about financing and what you could realistically be qualified for because without those numbers it's hard to truly analyze a deal.
Angel - I would increase the interest rate to about 6.5% if going with a bank/credit union and perhaps 5.5-6.0 if using Fannie/Freddie loan. I would also suggest a slightly higher management fee (6%) as well as adding in some costs for water/sewer/garbage. Could still be a very solid deal afterwards, but probably worth adding in those costs. Good Luck!
Quote from @Nathan A.:
The things that seem unrealistic to me here are 100% financing at 5% and management fees at 5%.
I have several Private money lenders offering 100% @5% for 25yrs
Quote from @Greg Kasmer:I have private money lenders offering 100% financing at 5% for 25yrs. yes the management fees are normally 10% (that was my mistake).
Angel - I would increase the interest rate to about 6.5% if going with a bank/credit union and perhaps 5.5-6.0 if using Fannie/Freddie loan. I would also suggest a slightly higher management fee (6%) as well as adding in some costs for water/sewer/garbage. Could still be a very solid deal afterwards, but probably worth adding in those costs. Good Luck!