[Calc Review] Help me analyze this deal

3 Replies

@Thomas Neff couple of things financing seems high. capex is low no property management. Capex looking at the roof guess $12000 to replace/ 25 life span /12 months= $40 per month. Flooring 1200 sf @ $5 sf = $6000 / 8 years / 12 months = $62.50 * 2 = $125 per month. Two items are at $165 slightly above your $67 budget.

@Thomas Neff ,

  • As @Tim Herman mentioned, you're CapEx is too low. I usually figure 15% combined with repairs.
  • You're missing both insurance and management.
  • You'll likely have to cover water/sewer.
  • What about lawn care / snow removal?
  • Your interest rate is really high. I bet you can get something closer to 5%.

My math shows your cash flow around $169/month and CoC ROI of <6%. Not nearly good enough for me.

Also, don't forget to "@" people in the forums so they know you've responded.