[Calc Review] Help me analyze this deal

9 Replies

The return numbers look decent. What is the estimate value if you fix and flip? I suspect the high cost(30K) of renovation and time it takes 3 months is NOT meant for a rental.  Tenants need to pay their own utilities.  No PM in America will work for 2%. Typ fee is 6-10%.  It looks like you are opening an opportunity for a lawsuit with no front safety rails. Check your local code.

@Joel Morel your numbers make no sense. pre you will have 50% vacancy. 3 months rent out of 6 months. ARV of $108500. Post cash out refi will be 70% of ARV or $75950.Vacancy 8%, repairs 7%, and capex 8%. PM will be 10% or higher. On a sfh you shouldn't have any utility bills, post rehab. Might want to include insurance on the property.

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Hello Sam, 

Thank you very much for reaching out and breaking down this property for me. I will definitely consider rehab as oppose to holding on to it . My intentions were to hold on to the property However you brought some clarity . I am new this game Trying figure out different angles so I really appreciate your thoughts . 

Sam, to answer your question . The property requires a new roof , floors and heating /cooling system . I am estimating about 45k for this duplex . I didn’t consider rails so I assume that will add to the cost as well . 

Tim, 

Thank you for reaching out. 

I am a bit intimidated by this property because of the amount of work that it is requiring as a first investment property and not having the skills sets to manage a lot of the fixes on my own . I am waiting on the property report from my realtor which should allow me to lunch in these numbers a lot more accurately. Thank you for your advice . 

@Joel Morel you have to tag people if you want a response. Type the @ sign and start typing their name it will populate outside the comment box. double click on their name. i can't tell if you should buy this or not. your numbers make no sense. In the pre refinance part you say the ARV is $108000.. but your refinance is $160000 which at 75% of ARV would be $213000. Your cost for vacancy,repairs, and capex are 9%. I use 23%. PM should be 10%. Rerun with better numbers and then i can give an opinion.