[Calc Review] Help me analyze this deal
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Hello, I used numbers based on phone calls to the country and electricity companies. It looks like im -157 cashflow. Could someone look through this and see if i made any errors or did this correctly before i move on to other properties. I could raise the rental income, however according to Zillow I would be at the top of the highest rent in the area.
Most Popular Reply
You're nowhere near the 1% rule, @Jacob Humiston. This place is never going to cash flow. Let's take a look at your analysis anyway:
- You should expect to put down 20-25% on any investment property. You'll never get 100% financing.
- Closing costs will be ~$4k.
- Always plan for some initial repairs.
- I'm not seeing any loans at 2.75%. Certainly not for investment properties.
- Vacancy will likely be 5-8%.
- Double your Repairs and CapEx. I figure 15% combined.
- What are the water/sewer and electric expenses for? Typically those are covered by the tenant in a SRF.
- Are taxes really $1400 on a nearly $400k property. That sounds absurdly low, but hey I live in a very HCOL area.