Deal Review: Opinions Welcome

[Jonathan Cope]

Intent: Buy and Hold

10th Property

Town House

1,300 sf

Foreclosure

Asking Price: 215,000

ARV: 265,000

Rehab: 7,500

Rent w/ Vacancy: 2,350

Taxes: 4,850

Monthly HOA: 725

LTV: 75

Rate: 5.5% 30yr

Initial Monthly Expense: 2,150

Buy: Yes or No?

[Brent Coombs]

@Jonathan Cope, having more than $60k tied up in a buy-n-hold deal (deposit plus rehab), earning less than 4% cash flow per year, doesn't appeal to me. I reckon too much can go wrong (eg. extended vacancy), and I'm not sure you're taking all ongoing expenses into proper account. 

This one likely suits an experienced flipper, rather than a long term rental, imho. Cheers...