[Calc Review] Help me analyze this deal

[Kateryna Kilinich]

View report

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

[Joe P.]

Where to begin...?

This is an investment property. You will not be able to do an FHA loan or conventional mortgage unless you live in the unit. You'll have to put 25% down.

And when they find out this is an investment, you'll more than likely be paying 5.5% interest rate on your mortgage assuming you have a near-perfect credit score.

No chance your closing costs will be $3,000. Try $20,000 to $30,000.

2% for CAPEX? Good luck. $64 a month is $768 a year. Basically the first thing that goes wrong will probably cost $500 just in materials -- think water heater, sink, heating unit, etc. Are you a handy person who can replace things? I budget 10% CAPEX and 10% maintenance and still struggle early on because things break and there is deferred maintenance.

I see nothing about water/sewer, property management, etc.

The report has already told you how this will probably go:

50% Rule Cash Flow Estimates
Total Monthly Income: $3,200.00
x50% for Expenses: $1,600.00
Monthly Payment/Interest Payment: $1,958.06
Total Monthly Cashflow using 50% Rule: -$358.06

Don't ignore this. You will lose money on this property because your evaluation going in is wildly inaccurate and you're not being realistic on your set-asides for problems.