[Calc Review] Help me analyze this deal

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I ran this several times with different amounts down. Seems I get the most COC % with 5% down payment as opposed to 20% down. Obviously the Cash Flow is less, but if I'm looking to tie up less money on this property this seems like a great deal. Am I missing something? Looking to buy and hold, then possibly sell at 5 years.

Two 3BR's at 1100 each

Yes less down typically offers a higher COC return, the main thing that I would be worried about is that your total project cost is $152k for a property you say has an ARV of $139k

Originally posted by @Aaron K. :

Yes less down typically offers a higher COC return, the main thing that I would be worried about is that your total project cost is $152k for a property you say has an ARV of $139k

Hmm , that's true. To further my understanding, the issue with that is that I would really have negative equity right?

Luckily, the 139k is actually the asking price, I would try to get that down at least 13k which would break me even on the ARV. I'm attempting to be conservative with the numbers and not put the ARV much higher after I do the fixes, although I believe it would probably go up a little.

Yeah negative equity is not good, and make sure that the lender is on board with 5% down for a non owner occupied investment property before assuming that they are. Many require 20-25% unless you've worked with them before.

Originally posted by @Aaron K. :

Yeah negative equity is not good, and make sure that the lender is on board with 5% down for a non owner occupied investment property before assuming that they are.  Many require 20-25% unless you've worked with them before.

Ah, I did not think of that. Good point. Thanks for that, I will check into that.

Originally posted by @Aaron K. :

Yeah negative equity is not good, and make sure that the lender is on board with 5% down for a non owner occupied investment property before assuming that they are.  Many require 20-25% unless you've worked with them before.

 This might sound dumb but why is negative equity not good?  

Purchase price -100k

Repairs - 10k 

So your total cash invest is X% of the purchase price (say 20% so 20,000) plus 10k for repairs. If the arv is only 100k why would that matter if it's cash flow is 625 per month ? 

Yes finding a 625 cash flow for a 100k property would be hard, but just using the numbers to give an example