Help with Analyzing Deal and Thoughts on Moving Forward...

4 Replies

I am considering this property and think I have the right numbers.  I was hoping to CF $200 per property and this one comes close. Numbers are pretty spot on - maybe slightly on the conservative side. Property is worth approx $125K in a good B neighborhood. 2 bed/2bath brick ranch.  It would be my first property. 

Would you do this deal? Why or why not?

@Elizabeth Mae . This deal looks ok. Monthly rent of $1000 on a $120k property. 

Only question I would ask is if the area support these rents? 

I would budget a little more money for utilities, because if your property is vacant, utilities get switched to you, which you should keep up for at least property showings and such. 

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Originally posted by @Henri Meli :

@Elizabeth Mae . This deal looks ok. Monthly rent of $1000 on a $120k property. 

Only question I would ask is if the area support these rents? 

I would budget a little more money for utilities, because if your property is vacant, utilities get switched to you, which you should keep up for at least property showings and such. 

Thank you, Henri. I didn't think of utilities. I will have to add that in somewhere. 

Howdy @Elizabeth Mae

I did not see anything for CapEx. What condition is the property in? You need to set aside an amount to cover future major repair/replacement. I use 10% until I have the property inspected to determine the current condition of all major components and appliances. Then a more accurate amount can be used for the reserves requirement.

So this deal didn't work out.  The property was a lot smaller than expected and needed more work than expected.  

Thanks for your feedback though.

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