Deal Analysis Advice - Southeast

[Jeff L.]

Hey BP -

I'm putting the numbers together on my first deal and would love to hear your thoughts.

The property I'm looking at is in one of the premier South Eastern cities (Call it Charleston, Savannah, etc.) and situated right on the fringe of two large-scale development projects that will transform the area (including 300 new residential apts). This location has tens of thousands of student and young professionals fighting over housing in a confined area. The house itself is a 3-2 that had a stud-out renovation 7 years ago. While it only has 1000sf, it also has two functional lofted areas and a basement (3brs are qualifying but very small). It is currently listed for just over $320,000 and is leased until the end of the year at $2,600 per month (~0.8%). The house next door is currently stripped to the studs and will undergo a full renovation as well. Over the next few years there will likely be construction around the property as the area redevelops. Based on my pro-forma with 20% down it looks like I can cash-flow ~$100 per month. There is much more detail that went into my analysis, but would love to get your reaction. Any advice would be much appreciated.

All the best,

Jeff