Is This A Good Deal? My Analysis Numbers!
Hello, all! Newbie here! Looking for my first deal within the next month. I found a place in the Pine Castle area of Orlando. It's in between Edgewood and Pinecastle (Would be off Oakridge and to the West of Orange by a hair).
Asking price is $96.9k. Looking at comps (and it seems to be a foreclosure), I'm thinking of my max offer being 80k so that was used for analysis. The home is a 3/1 with 1500 sq ft, which I think is HUGE! Also, to note, it has a pool. Looking at the pictures, it definitely needs a kitchen rehab and flooring as there has been some damage (some stripping of the tiles, appliances, and some of the cabinets removed). I'm thinking if I can do the painting of the inside and try to tackle the flooring (watching videos and shows), I can keep my rehab price below 30k. What do you think?
Anyway, here's my analysis! I hope you're able to see!
I do have a question on the analysis. I originally did it without the cost of rehab but in example below I included it b/c I wasn't sure if you include rehab costs if it's just a one time thing?
Without the rehab costs, the cash & closing cost is 18,400, making the cap rate 15.9 and cash on cash 66.9%.
With rehab costs (in case you can't see) cap is 15, and cash on cash is 27.8%.
Thanks so much for your help!