[Calc Review] Help me analyze this deal

[Devin Hughes]

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

[Tim Herman]

@Devin Hughes you are not using the calculator correctly. Rehab 2 months = $0 income . Refinance 6 months= 4 months income. Vacancy =2/6= 33% vacancy factor. Don't need capex and repair during rehab. Pm= 4*11%= 44%/6= 7.3% pm. There is no amortization as you are paying interest only. NOI is all expenses less principal and interest. You add that you are cash flowing negative each month. Unlikely you will get a 75% LTV cash out refi, more likely 70% and higher interest rate. Around 5.5% or more. To come close to cash flowing this property you would need to use the 1% rule. monthly rent divided by 1%= max purchase price. $1600/.01= $160000.