[Calc Review] [Huntsville] Help me analyze this deal

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  • Samuel Smith
    OP
    Rental Property Investor · Huntsville, AL · Member since 2019 · 27 posts · 3 votes
    6y

    The numbers are subject to change depending on other factors but I tried to get an avg and work of that. Mainly the purchase price and the ARV because it is a newly constructed area.

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  • Peter McDonough
    Rental Property Investor · Huntsville, AL · Member since 2015 · 181 posts · 136 votes
    6y

    This is a brand new construction. How are you going to add $2k of repair cost and increase the ARV by $50k?

    2 bedroom houses do not rent for $2000/month in Madison.

    Closing costs will be more than 2000.  Try 5-6, depending on broker.

    Those townhomes all sold for ~250ish, and none are still on the market?

    This doesn't seem like a good deal.

    1Reply
  • Marcus B Hsu
    Rental Property Investor · San Diego CA · Member since 2019 · 68 posts · 51 votes
    6y

    IMHO, Agree with Peter, don't see how you can get $2k/month and 50k ARV with spending just 2k on repair.

    Rate assumes this is your primary residence? investor rate would be higher for the loan. 

    COCROI is too low, better return to invest in an index fund.

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