Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
6y
Your expenses are off some but the thing that jumps out is the interest rate on your loan and the condition of the property .are you sure it’s even worth 70k are you sure it only needs 2500 in repairs . Where are you getting it’s worth 80k arv ? Just seems kinda ratty in the picture and I’d question if this is worth the asking price . There’s issues with your calculations . Your probably not going to make squat for cashflow based on what it actually generates in real life
Real Estate Broker · Lexington, KY · Member since 2017 · 131 posts · 129 votes
6y
I agree with @Dennis M.. $2,500 is not going to get you very far. The loan interest rate is also way too high. Judging by the photos, I would be shocked if this property appreciated 3% per year. Understanding where the 80,000 ARV came from would definitely be helpful to know.
as you can tell this is my first time doing this and my numbers were best guess. But as far as the interest rate on the loan would be approximately what on a loan like this? I'm not gonna live there so I wouldn't have an FHA loan