[Calc Review] Help me analyze this deal - BRRRR

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  • Jaysen Medhurst
    Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
    7y

    @Michael Roblee,

    • Is this SF or MF?
    • Do you plan to owner occupy?

    Regarding your expenses:

    • Repairs and CapEx are low. I figure 15% combined.
    • Vacancy might be a touch low. I usually use 8%, but this is super local.
    • Management will likely be 10-12%.
    • What about water/sewer, lawn care, snow removal, or any other house utilities?
    • Doubtful that you're getting 4% for 30 years on an investment property. Maybe if it's owner occupied. 
    • Are you purchasing with cash? If not, you'll have to figure some debt service on the initial purchase/reno.

    I don't see this cash flowing more than ~$50/month.

    1Reply
  • Mike Celli
    Washington, DC · Member since 2019 · 81 posts · 38 votes
    7y

    @Michael Roblee. I agree with the previous poster, your expenses are too low. Property management will be 10% minimum. Cap ex and repairs and vacancy are all too low. Should be between 7-10%. If I were you I would be conservative withe these estimates so you don’t get surprised.

    1Reply
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