DEAL ANALYSIS: First buy and hold/BRRRR
4/Br 2 Ba
Asking 130,000 (hoping to close 115-120)
Rent in area varies but updated 1400 should be reasonable
Needs updating mostly floor, paint, maybe counters estimated 15000
Potential 5th bedroom 3rd bath kitchenette in basement
ARV 160000
Tenant pays all utilities
Annual property taxes 1800
10% cap ex 10% maintenance 10% vacancy 10% property management
Cash flow 160$ per month
Cap rate 6% ROI 4%(I'm using 100% opm so my ROI is better)
Financing conventional with a private money second that balloons in eight years.
My hope is that i can do the work need and refi to pay off the second otherwise eight years rent should be enough equity to do so.
It seems to work to me, But know I don't know what i don't know. Is there something I'm not taking into account? I can add more info as needed. How would you treat this deal
Thanks for taking the time to read this any and all advice is much appreciated.
-Casey