[Calc Review] Help me analyze this deal

[Zach Foster]

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*This link comes directly from our calculators, based on information input by the member who post. 

Newbie alert. I am wondering if I did the numbers correct?

[Ryan Smid]

Hi Zach,

Is this a MTR with rent at $5,200? For me, I budget for electricity and gas at a total of $200 per month. CapEx is at zero, I'd put that as 5% as you'll need that capital in the future. I assume you're self managing since management fee is at zero?

Especially in this market, I'm very conservative with my numbers. So if comps show MTR as $5k-$6k a month on furnished finder, I use $5k or less. And I aim much higher for my utilities, especially for MTR because they tend to run the AC/heater harder since they don't see the costs associated with it. I also use 8% for interest rate, but that varies heavily on each person. I'd also complete a quick online quote for home insurance, $74 a month seems very low, but again its based on many many factors. But for me, my small/basic primary townhome is over $100 a month and I shopped around with 5 agencies.

Worst case, if you hit these conservative numbers, you're still in the green. Any extra is very positive.

[Bonnie Low]

We'd need to know more about the property: location, configuration, age of building & major mechanicals, etc. Your utility expenses (power, gas, water, sewer and trash) are very, very low for almost anywhere. For an MTR, you'll probably be paying the utilities. Tenants don't want to put utilities in their name for just a couple of month stays. Your target rent also seems very high unless you're targeting insurance placement clients.

[Doug Spence]

@Zach Foster How did you determine the monthly insurance payment? I would contact insurance companies and get quotes, making sure they know that it will be used as an MTR!