[Calc Review] Help me analyze this deal

[Sarah Jordan]

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Hello,

I'm hoping I can get some eyes on this deal to help me determine if it's a good purchase for my first investment property. I'm hoping to rent it out as a MTR since it's 1 mile from the major hospital. It does cash flow as a long term rental, and it should cash flow about $975 as a MTR & $1771 as a STR.

My concerns are that it's being sold "as is" and the real estate agent said the following about it:

"The HVAC is old and the Roof is 15+ years old. That’s where the “as-is” comes in, per the listing broker. The area is in transition but its location is really good. There’s a lot of rehabbing and restoration efforts in that area which is why I’m pegging it as a property to look at."

Any info is helpful!

[Doug Spence]

@Sarah Jordan Are you self-managing this property? I don't see a management expense included.

I would definitely factor in a new roof and new HVAC into your short-term CAPEX. You can make a lower offer to account for those.

Also, I'm guessing you didn't include utilities since you did it as a LTR not a MTR, but if you do MTR you'll have to cover the utilities. You'll also have to pay to furnish the home! 

How are you planning to finance the home? Are you doing this as a BRRRR or as a normal rental using conventiona financing?