[Calc Review] Help me analyze this deal

2 Replies

I have a lot of questions, @Cody Ringler :

  • Why do you think you'll be able to add $100k of value with no renovation?
  • Include an initial-repairs budget. There is always something!
  • You're buying this with 0% down? Is this a VA loan? If so, you'll have to owner occupy, at least for a while.
  • What about insurance?
  • Management will be at least 10%.
  • CapEx is high, but you forgot repairs. Together, they probably be ~15%, so your overall number is fine.
  • What does the $100/month "misc" cover? Try and be as specific as possible with your expenses.
  • How about water/sewer? That's usually covered by the owner of MFR.
  • Any lawn care to consider?
Originally posted by @Jaysen Medhurst :

I have a lot of questions, @Cody Ringler:

  • Why do you think you'll be able to add $100k of value with no renovation?
  • Include an initial-repairs budget. There is always something!
  • You're buying this with 0% down? Is this a VA loan? If so, you'll have to owner occupy, at least for a while.
  • What about insurance?
  • Management will be at least 10%.
  • CapEx is high, but you forgot repairs. Together, they probably be ~15%, so your overall number is fine.
  • What does the $100/month "misc" cover? Try and be as specific as possible with your expenses.
  • How about water/sewer? That's usually covered by the owner of MFR.
  • Any lawn care to consider?

Hey, Jaysen thanks for the feedback. With going further in the process of closing this deal I've had to adjust my numbers a bit so these are the new numbers.

1.) The CMA on the house is saying the property is valued at 300k as is. I got it for 242k. I will want to do some stuff to it but other than a few minor things its good to go.

2.)This is a VA Loan. I will be occupying this and for the first year, id be paying 50/month out of pocket for this property but after the year is what I'm really anticipating for. Insurance will be running me 150/month.

3.)Management will be 10%

3.) The misc is the utilities id be paying for monthly. But once I move out they would be paying that. It is separately metered.

4.) And the lawn care will be done by myself.