[Calc Review] Help me analyze this deal

3 Replies

@Chad Anderson i think all your expenses are low. If you’re doing a full gut to make everything new you may be able to get away with a lower repair budget, but vacancy should typically be between 5-10%, and as was mentioned before, unless you have some incredible hookup your insurance is severely underestimated. Property management looks low as well...if you average out 12 month tenants where the management company takes 50% of rent for a placement fee and 8% monthly, that comes out to 12.2%. If you pay any more than that, expect that to go up.

All in all it’d probably be better to estimate around $50 a month in cash flow unless there’s something significant I’m missing. If that still meets your criteria once you pull your money out then go for it, but it doesn’t look like a cash cow.

@Geordy Rostad and @Patrick Menefee . Thank you both. I'm very new to this and am just looking and practicing analyzing property. Here is the address I found. At this point I'm not worried about getting this deal I just want to do the analysis and learn from my mistakes on paper rather than to buy the property and learn the hard way. Here is the address of that property. I used figures from both Realtor.com and zillow.com to get the numbers including the insurance. If you guys want to analyze the property and even buy it that would be fine. I'm in it for the training. Again thank you both for your input.

403 Lawndale Ave , Highpoint, NC 27260