Real Estate Deal Analysis & Advice

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Elliot Friedman
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[Calc Review] Help me analyze this deal

Elliot Friedman
Posted Oct 6 2019, 08:38

I am looking at a property that currently has three bedrooms, two bathrooms and an unfinished basement. If i finish up the basement i can make it two bedrooms and two bathrooms and rent each bedroom out individually. Based on the local market, i believe that i can rent the rooms for $600 a piece. 

5rooms*$600 = $3,000/month


Expenses Debt service Income
HOA 225 Mortgage 891 1 room 600
Garbage 20 Insurance 120 1 room 600
Utilities 300 Taxes 134 master bed 600
CAPEX 150 Total 1800
repairs 100
Assessments 50
Vacancy 250
Internet 50
total 1145 total 1145
Total monthly cost 2290
Down payment 15000 Basement bedrooms 600
5bd 3b Basement fix up costs 35000 600
Totaling invested 50000
Total income 3000
COC 0.1704
Monthly cash flow 710

Please let me know if this makes any sense. If i were to rent out the house on its own, I would maybe get fifteen hundred dollars a month.

I am a new real estate investor and it was my realtors idea to finish the basement off. The deal only makes sense if i can finish off the basement for a very reasonable price and i can get the rents i think i can get.

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