[Calc Review] Help me analyze this deal

7 Replies

I've found a SFR that needs a lot of work: foundation, water mitigation, plumbing (and this is what I can see). Keeping it as a SFR-hold doesn't make much sense but I'm considering the potential of a Duplex and wanted to hear your thoughts.

Howdy @Aaron Winters

You did not include any Rehab estimate.  How do  you expect to force appreciation $20K without any repairs?

What is your investment criteria? Cash Flow? ROI? Appreciation?

This is not a good BRRRR deal.

As far as converting to a Duplex you need to check on how it is zoned.  You may not be able to convert it if it is single family only.

@John Leavelle I put all of the rehab costs into purchase price in order utilize hard money financing. I wasn’t able to have rehab costs flow through financing. 

Good call on not being able to convert - I heard back from the city and they would not allow the change to a duplex. 

@Aaron Winters

Not sure what you mean by “put all rehab costs into purchase price ... wasn’t able to have rehab costs flow through financing “. ????

Does the HML require a Down payment? If so, how much? Is the $59,150 Down payment really the Rehab estimate?

Regardless, you should separate the amount for Purchase price and Rehab estimate in the first section. In the Acquisition section anything not covered by the HML is assumed cash out of your pocket. This number is reflected as the Amount of cash needed at closing. If you do not put data in the correct areas it makes it difficult for us to help you evaluate your deals.

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