[Calc Review] Help me analyze this deal
*This link comes directly from our calculators, based on information input by the member who posted.
Hello everyone. I posted the report above but forgot to put information into the post. This property is located in OKC and is a duplex with 2 bed, 1 bath each unit and has been neglected for a number of years. It will need a lot of work. The location is good for renting, not oversaturated with rentals. There is really only one comp in the area, it is 1 bed, 1 bath each side was remodeled and sold for $245,000 close to asking price. I need to pull money back out of this deal, but based on my calculations that will be a few years bed=fore I can do that. Thoughts?
@Veronica Giggers How long can you support negative cash flow. That extensive of a remodel will increase your property tax. Googled average tax and it is .085 of ARV. You tax will go up to around $225 per month. Your all in is 280k for $2100 of income. Unlikely you can find PM for 5%.
Quote from @Tim Herman:Thank you Tim. I didn't think to calculate average tax of ARV, but I knew it would be a while before there is positive cash flow. Also, I am conservative on rental income projections.
@Veronica Giggers How long can you support negative cash flow. That extensive of a remodel will increase your property tax. Googled average tax and it is .085 of ARV. You tax will go up to around $225 per month. Your all in is 280k for $2100 of income. Unlikely you can find PM for 5%.
The expected rents in that area fluctuate a lot depending on which part of NE 18th you are on.
Quote from @Rhett Tullis:
The expected rents in that area fluctuate a lot depending on which part of NE 18th you are on.
Rhett. The property is east of Lincoln Blvd.
Hmm im very new to all this but i would assume that if you are going to need to pull money out, you should look for a different deal or flip. Im wondering how you came up with a ARV of $320K if the comp was only $245k? Im curious if there would be another way to pull money back out if a cash out refi wouldnt work?
east of Lincoln but west of Kelley you are in good shape the closer you get to Lottie the lower your rents may go in my opinion.