Analyzing a potential Deal

[Mario F.]

Hello!   I was wondering if I could have some help analyzing this property in Inglewood CA.  It's on the market for 255k but there is no way this will cash flow for that price so I won't even try to buy it unless they come down.  Im' running these numbers and even with 25% down, I'm still not getting cash flow.  My rent is estimated at 1700 per month.  Rento meter.com is estimating more like 1500 permonth.  

My plan is to live her for a year and then rent it out.  The area is up and coming because of the stadium so I think in the long run, the property will get 2k per month. Seems inevitable.  But here I am speculating which is making me wonder if I should go in.  The property is 2bed and 2.5 bath - 893 sq ft.  What do you guys think?  Do my numbers make sense?  According to these numbers it looks like I should stay away.

[Brent Coombs]

How about: find a Duplex-Fourplex, where the purchase price is NOT 2-4 times this SFR? By house hacking, your expenses are ameliorated (to less than rent hopefully), and you wouldn't need to repeat the exercise after a year unless you wanted to scale your investments quickly. Cheers...