Deal Analysis Need Criticism

[Erik Drentlaw]

Would you mind checking my analysis? ARV and rent + plus my max offer price?

I am preliminary looking at places. I really like this house because of location and awesome schools. Think it could definitely see some good appreciation, and I wouldn't have trouble renting it. The schools are awesome. What do the Dallas area people think of this location for a rental?

 It looks like if my calculations below are correct I can make this house work with a max offer price of $63,000 however it might be hard talking them down from $115,000. When I do this for real I am going to try to acquire the property by driving for dollars.

Check this zillow listing out

My quick numbers
Rent $1600
ARV $160,000 x 80% = $128,000 - 65,000 (repairs) = $63,000

50% rule with offer price of $63,000

expenses $800

NOI $9600 Cap rate 7.5

Loan servicing $747 private money @7% interest only

Cash flow = $53 with refinance @ ARV of $160,000 and 75LTV Mortgage = $120,000 @5.25 payments of $663 New Cash Flow = $137
Cash needed for refinance $8,000 + Closing costs

@John Chapman @Joe Butcher @Harry M. @Andrew Herrig