[Calc Review] Help me analyze my first offer
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Hi, @Deone Doctors. If your numbers are accurate, this may be a sweet little rental. My first question is why are you paying $47k for a property you only think will be worth $45k? Skip the work and headache and just by a renovated property for $45k. You deserve to be compensated for the work and effort of a BRRRR. I'd offer something closer to $22k.
Regarding your analysis:
- Most banks require a 6-month seasoning period before they'll loan based on a new appraisal.
- Do you have a lender lined up that will write such a small mortgage?
- Repairs and CapEx are low, especially for such an inexpensive property. I would put aside at least 15% combined.
- Insurance is SUPER HIGH for a $45k property. I'd expect something closer to $30/month.
If your rent and reno numbers are good, and this isn't in a war zone, I bet you can cash flow $300+/month. You should be buying 10 of these a month.