[Calc Review] Help me analyze this deal
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@Beau Garrett, this looks like a flip. Was sold for $74k about 18 months ago. What do comps the comps say about ARV?
As far as your analysis:
- Repairs and CapEx are low. I like to use 15% combined. I realize this is recently renovated, but over time it all evens out.
- Management will likely be 10-12%.
- Garbage should be paid by the tenant.
My one major worry would be your estimated rent. I don't see any rental comps nearby. The closest are East of I-24 or South of 155. Not sure those support $1800/month. Similar houses look to be in the $1400-1500 range. If that's market rent, this deal is a no-go. You'll be lucky to break even.
If you can get $1800, I think your cash flow will be closer to $200/month. That's still very solid, ~10% CoC ROI. As long as you get a great tenant in there, should be a pretty easy property.