[Calc Review] Help me analyze this deal
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
|Total monthly cost||2290|
|Down payment||15000||Basement bedrooms||600|
|5bd 3b||Basement fix up costs||35000||600|
|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.