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Please provide the positives and negatives you see with these numbers. I primarily want to Wholesale but this was presented to me. In my novice experience, the numbers look good. However, I am always open to feedback and learning.
Hey @Omar Bunch Numbers look good. May want to increase vacancy to 8%. I've seen that as a rule of thumb assuming 1 month out of the year you may be empty transitioning from one tenant to another. Have you thought about BRRRR'n this deal to get your cash back out and increase your ROI?
@Omar Bunch 3% Vacancy is too low, you'll want that set at around 8% so that you're accruing about 1 month of rent saved per year (1/12 = 8.333%). I'm also not familiar with you're area, but would recommend you make sure of the rental income/month number, check rentometer and local listings (if you haven't already) to verify. Good luck!
Are some of the repair costs related to Capex? If not, that category (10%) seem low for such an old property. Is owner going to find tenants? If not, doesn't management fees typically equal 10% of rent plus 50%-100% of first month rent? Vacancy also seems low but I don't know the market. Nice forced appreciation number!
Thank you all for your feedback. I appreciate the positive and real perspective. Im sure you ste all aware that this a common weak point for many newbies. Although the calculator is a great tool, it's only as good as the data we put in. The insight provided is duly noted.