[Calc Review] Help me analyze this deal

2 Replies

View report

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

Property is listed for 170k, been on the market for sometime now. Looking to offer at 150k, or aiming for 145k if possible to hit the 1% rule. However with all other savings for maintain and etx added it does not seem to be a good deal anymore.  Am I doing the calculations wrong? Or is this due to the low money down?

operating income is negative every year though you are assuming 0% vacancies? Plus, I would think you'd need a line item for capex to fix up your unit/house.

97% ltv is also really high.

you are banking on the increase in value alone to make money

@Kevin Lim I put vacancy at 10% just to be safe. You are right thought 97% LTV is too high. Just was curious given that at 1% that property does work however with HOA eating up a good portion of profits, it does not leave enough for save for capex's. Thank you for your feedback Kevin! Really appreciate it.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here