[Calc Review] Help me analyze this deal

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*This link comes directly from our calculators, based on information input by the member who posted.

I am close to acquiring this property for $298.  At that price I would actually spend a little more (about $15k) on upgrades to ensure maximum valuation at completion of repairs.  This is my first offer since starting my real estate investing business.  Am I missing anything?  I need an investment source that will require less than a $10k investment from me.  I'd really like a $0 investment deal from me.  My analysis from A-Z looks like this:

298,000 Acquisition

83,000  Repairs

7,000 Taxes (6 mos. holding period assumption)
32,000 Commissions

12,000 Title, Legal, Accounting, Ins. 

38,250 Debt Service (10%)

5,000 Maintenance (Landscaping, Cleaning, Utilities , etc. during holding period)

475,250

49,750 Net Income

@Luis Bermudez You show repairs at 83k...but you mentioned 15k in repairs in your description. Just want to clarify what repair price is. 

Biggest question I have is do you have reserves to cover holding costs if it doesn't sell for a few months? What is your average market time in that price range in your area? You are in Pennsylvania? 

A general contractor gave me an estimate of repairs for $83k. I was looking for things to cut from his estimate to cover the cost of upgrading the landscaping. If the seller agrees to sell for $298, I can add the landscaping and upgrade faucets in kitchen and bathroom to improve the ARV (an increase in repair costs of $15k). Total repair would jump to $98k. High comp for the area is $1.06M. Low comp for the area is $469k.

Regarding the holding costs:

I'm honestly looking at 6-9 months on the market after repairs with the hope that more like 4-5. I'm currently working with my credit union to open a LOC to cover the holding costs. Holding costs are projected between $30 - 40k.

Sounds like you've done your homework and are ready to move forward! Have you made an offer? How long has the home been on the market? 

Home has been on the market for over 6 months.  Sellers are emotionally attached despite having a financial motivation to sell.  I am cautiously optimistic that when they are ready they will call me.  I want to be in a financial position to act quickly.  Thanks for your comments