Updated over 7 years ago on . Most recent reply
Help me analyze this deal
*This link comes directly from our calculators, based on information input by the member who posted.
The plan is to rent for five years and refinance or sell for a profit of $23,000 on a near no money down deal.
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Are you financing 100% of this purchase? As it is, it looks pretty tight; enough so that even relatively slight deviations from your assumptions can derail the deal. (As evidenced by the 50% rule result)
Keep in mind the more leveraged, the more critical it is that the underwriting is well researched
Also, typically at 100% financing, there should be a pretty good cushion built into the deal.
Are you relying on seller's representation that you can get 950 a side?
Just because the BP calculators say you will profit on sale about $23,000 five years from now, there is absolutely no guarantee that will happen. We could be in the depths of a buyers market at that time.