Updated 4 days ago on . Most recent reply
[Calc Review] Help me analyze this deal
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Hello, looking to see if this duplex could be a deal. The way I structured the deal is 203k Loan, 4% down. House hack.
Purchase price $240,000
Rehab estimate %25,000
ARV $339,000
Monthly rents $1400 per unit, $2800 both units occupied.
Cashflow monthly after expenses $300.
Advice or corrections would be appreciated, thanks! Found property on zillow 207 williams cannon dr, austin texas
Most Popular Reply
@Marcos Cardenas I reviewed the numbers and listing so I have some thoughts.
#1 Good chance that's a $50k remodel. It's not the roughest property ever but if the HVAC, water heater, and roof is really old you're better off replacing them. Those items alone could be $25k. I'd dive deep and get the video tour to review the interior layout as well. All of this affects the ARV. With a 4% DP you have to get the maximum value add.
#2 It says it's tenant occupied. You didn't screen the tenants. That can be a problem if you choose to purchase it. Looks like another lease was signed in the fall... something to ask about.
#3 Location, location, location. Is that street very noisy?
#4 The listing description is full of nothing. About half of it describes the area, local shops, but nothing meaningful to the properties condition. This leads back to #1 because if you want $1400 per unit you'll need a good rehab to force the value.
Cheers