[Calc Review] Help me analyze this deal
*This link comes directly from our calculators, based on information input by the member who posted.
Hey Troy, the property manager might be a bit on the lower side unless you are getting a deal with the PM. Most PMs are going to start at 8% and go up to about 10%
Hi William, Ok, thanks for that info.
If your variables are pretty accurate then this looks like a good deal. I would take it.
What market can I find something like this in? :)
Hey Troy. Some comments below.
Change Management to 10% - this is the going rate for 1 property managed by a company
Change Vacancy to 8.33% - this is one month per year. (1/12). Consider this to be higher if you are renting to students.
Change interest rate to 7.5% - investment properties pay higher interest
How are you accounting for initial repairs? It looks like this calculator is assuming a $60,000 home that needs no work. I'd add in $25,000 to your loan amount for repairs, or to your cash down number. Since you will need to spend some money to stabilize this property. Unless it is turnkey @ $1200/month. Needs to be accounted for somewhere.
Best Regards,
Matt
Nice Guy Realty LLC