[Calc Review] Help me analyze this 3/2 SFH

4 Replies

Right from the start: it's negative cash flow. Even if you see the home value dramatically increasing to offset the the negative cash flow, it is still dangerous territory. That would make this whole deal reliant on speculation, which is closer to gambling than investing in this case.

HOWEVER, I have property taxes coming in at $5,136/year? This may be correct for the are, but seems awfully high for a sfh. Since those records are public, getting an exact tax expense figured out will help with this deal quite a bit. Back-of-the-napkin math, but if your annual property taxes are half of that, then you will be coming out at about $200/month. Again, this assumes your property tax numbers are much higher than what they actually will be. All your other numbers look pretty good in general though.

@Shea Munion , I'm with @Eric Long on this one.  Something seems too high...you have have 1% rule situation so I'm guessing you have something too high on your expenses.  Can you possibly self manage also?  You should be able to find management for 8% at least.  Below is similar (if not same) property with high level numbers and even less rent with 1% Property Tax and it cash flows pretty well.