Allentown deal analysis help!

[Stephen Kunen]

For the investors in Allentown, PA, I would greatly appreciate if you can help me with this deal that I am analyzing. I have used the BiggerPockets BRRRR analysis tool, but not sure if I have used the correct assumptions.

Property:  1241 W CHew, Allentown City PA, 18102 (2-unit house)

- listed for $73k

- Offer: $40k

- Closing cost: $9k

- Repairs: $16k

- ARV: $90k

- Rent: $1,800 a month

- Vacancy, Maintenance, CapEx: 10% each

- Water and Sewer: $100 a month

- Insurance: $100 a month

- Property management: $180 a month

- Property tax: $261 a month

This leaves me $232 cash flow per month if I refinance it at $90k at 5% interest rate. There are a lot of assumptions going in there. I relied mostly on comparable recently sold houses and rents from Zillow. For the repair costs, I relied on the pictures of the posting. Now $40k offer price may be too low and won't be accepted, but I used the formula ARV * 65% - Repair cost to determine the MAO.

Again, greatly appreciate your thoughts!