[Calc Review] Help me analyze this deal

1 Reply

All,

Please help me analyze this property. I included a monthly insurance of $120. This would be my first property so I don't know if this is an accurate number. The annual taxes were taken from the MLS and I would live in this property via househack. Taking $1,100 off the income I would be paying approx $700 in housing expenses which I think is a good number living in DFW.

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*This link comes directly from our calculators, based on information input by the member who posted.

Why the upfront deductions for capex, reparis, vacancies? Do you know these numbers are correct? Are you planning to live off the profit of just one buy and hold property? As I mentioned in my previous posts, deducting a few made up numbers off the cash flow won't work. Ideally you want to get to the point with your buy and hold operation where you have enough surplus cash flow coming in each month where you can cover a line of credit for your properties. You don't need to sit on a mountain of reserves if you have a line of credit that can cover repairs. I like to have 40% of surplus cash flow each month. You can't live off of one property and you should not tap into the cash flow of one property at all for personal expenses (only for the acquisition of more cash flowing assets).