[Calc Review] Help me analyze this deal

3 Replies

Hey @Samuel Hill , how confident are you in the rental amount? Have you verified it with a local property manager or with Rentometer?

How's the area it's in?

I would put the interest rate a bit higher as well (upper 4's maybe low 5's)

I see the house was built in 1860 and that the inside was painted up, I'd be sure to get an inspection done on all the major components to see if anything needs work or not.

My top advice is be sure of the location and of the rent amount, verify it

If all lines up, it looks solid. Just old

@Samuel Hill

  • Vacancy might be low, depending on your market. I use 8%.
  • CapEx and Repairs, 15% combined would make me more comfortable.
  • You don't have management accounted for (10-12%). You should include even if you plan to self-manage.
  • I assume water/sewer and all other utilities are covered by the tenant?
  • Lawn care and snow removal?
  • 4.5% interest rate might be optimistic for an investment property. Confirm with your lender.
  • Closing costs look high. Also confirm with your lender.

My math shows this cash flowing $135/month, CoC ROI of 4%. Not surprising since you're a bit under the 1% rule.

A hard pass for me at this price.