BRRR 3/4 THS deal analysis
Good afternoon group, I would love some comments about my deal review below:
Current REO 3 bdrm / 4 bath THS with garage. List 115k. Low end comps in the area over the past 6 months, 215k. Conservative rent 1650/month. Average vacancy time for rentals in the area for 2016 is 36 days. I have a lender that will do 15% down @ 6% for 30 yrs. I have 30k for a deposit/repairs.
Estimate: carpet (1300 sq ft @ $5/sq ft) $5200
Appliances: 3500 for kitchen
Paint : 1000
Monthly Expenses
HOA: 65 / Vacancy 130/ management 130/ capex 65 / maint 65 / utilities - tenant
Total 465
Purchase price 115k
Closing costs 5k
Repairs 10k
holding (2 months) 2k
15% down 17000
Ins 60/month
property taxes 172/month
Total monthly expenses $697 P&I payment $686 Total $1,383
Cash flow $266 Cash on cash return ~18%.
based on the above, i am all in at 149k and based on the current ARV's i should be able to BRRRR this and do it all over again..
lawn care is included in the HOA fees.
Thank you for your time.
Eric