Help me analyze this deal

2 Replies

I am looking for help in analyzing this deal. One lender I can work with says he will do a 5/1 ARM , 5.75% rate, 1.5 points. This is what this deal reflects. Thank you for all input in advance. Very new to the numbers side of this process.

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

I notice that you didn't count in for Capex, vacany, or maint/repairs?!? These are all items you need to consider for the BRRRR Strategy, and any buy & hold property for that matter. Also, are you self-managing, because I see that you didn't include any Mgmt fees either.

Howdy @Barbara Caccia

The first part of the analysis looks reasonable.  I have a couple of questions.  

1. Does your Rehab estimate include Holding Costs? These include (but not limited to) mortgage payments, taxes, insurance, utilities, HOA fees, etc. that occur during the Rehab period and up until the property is fully rented.

2.  Does the Refinance loan amount include the closing cost/fee?  It can be included or paid separately.

Depending on your answer your Total Cash Invested and COC ROI may be misleading.

As far as your Cash Flow analysis I totally agree with @Derek Sperzel .  You left out critical expenses you really need to account for.  Look at the Total Monthly Cash Flow using the 50% Rule ($97) for a more conservative approach.  It looks a little lit on Cash Flow to me.