Updated almost 6 years ago on . Most recent reply
[Calc Review] FIRST POTENTIAL PROPERTY! Help me analyze this deal
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Found this potential gem while practicing analyzing deals. Not sure if the numbers are right. The units are all leased out. Can I still maybe get it through FHA? Please help. Thanks!
Most Popular Reply
This looks interesting, @Michael Menchaca. A few things to think about:
- The listing says "cash or hard money only," so that may be your problem if you want to use a FHA.
- Listing also says "owner pays all bills." Not good. I see at least 2 meters in the photos. Why is the owner paying everything?
- Why did taxes double in 2017?
Regarding your analysis:
- Bump CapEx and Repairs to 15% combined.
- Vacancy may be closer to 8%. Especially if this isn't a great neighborhood.
- Insurance looks high. Confirm with a local insurance agent.
- What's the "misc." expense for?
- You're not accounting for any utilities. Expect to at least pay for water/sewer.
- Where is your tax number from? Listing says ~$4k/year or $340/month.
- I assume you didn't include rent for the 4th unit because you'll be living there? Good. Also run the numbers as a pure investment, so you know how they look after you move out.