[Calc Review] Help me analyze this deal - BRRRR

2 Replies

@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.

@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.