Help me analyze this deal (deal or no deal)

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  • Michael JonesPro Member
    OP
    Real Estate Agent · Oklahoma City, OK · Member since 2018 · 50 posts · 17 votes
    7y

    Deal or no deal

  • Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    7y

    No deal 

  • Michael JonesPro Member
    OP
    Real Estate Agent · Oklahoma City, OK · Member since 2018 · 50 posts · 17 votes
    7y

    Thanks...offered $83K on a $98K list price and they will not go below $90K.  House is in excellent shape.  

  • Investor · Roseville, CA · Member since 2016 · 893 posts · 1k+ votes
    7y

    @Michael Jones, numbers don't look too bad to me...but I also know nothing about how accurate your rental estimates are or the condition of the property.  Maybe bump up your vacancy rates (usually 8% is good start) a bit though.  Analyze for worst case and if it still pens out you are in good shape.  ;)

  • Michael JonesPro Member
    OP
    Real Estate Agent · Oklahoma City, OK · Member since 2018 · 50 posts · 17 votes
    7y

    It is by an AF base, so $950 would be easy to get.  The house is in excellent condition after rehab.  Thanks for the advice 

  • Member since 2019 · 27 posts · 15 votes
    7y

    Your numbers are not conservative enough in my view. Mgmt should be 10%, taxes seem little low, 500 seems low. 

    How old is the AC unit? Over 10 yrs it WILL have issues.

    Furnace age? etc. 

    It will need a paint job before you move a renter in. 

    You should make at least $200/mo cash flow or it's a no go. If your walking into a lot of equity that's good but you need cash flow. 

    Mortgage rate is high too. Can you get 4.5? through a credit union/local bank? 

    Keep working at it. There is a deal for you. 

  • Rental Property Investor · Los Angeles, CA · Member since 2016 · 137 posts · 80 votes
    7y

    Can I check that you are able to put 15% down on an investment property? Typically its 25% down for investment property.  Is the down payment accurate? 

  • Michael JonesPro Member
    OP
    Real Estate Agent · Oklahoma City, OK · Member since 2018 · 50 posts · 17 votes
    7y

    Hello @ Jonathan slagill, I have a property management company lined up at 8% and great points on adding additional money for big ticket items.  I have excellent credit and to get that low of an interest rate requires 25% down with points. The credit union was an awesome rate but required 30% down (I will get there).  I appreciate your help and may look to you in the future...

  • Michael JonesPro Member
    OP
    Real Estate Agent · Oklahoma City, OK · Member since 2018 · 50 posts · 17 votes
    7y

    @ Tony 

    @Tony Mai With my excellent credit I am able to put 15% down on a SFH, but not the case if I get a multi family unit.

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