[Calc Review] Help me analyze this deal

6 Replies

@Oz Ramos very interesting reading. 3% interest loan with no down payment. No closing costs.Non owner occupied will be 20% and higher interest rate. 20k repair generates 250k in value. Refi you will have to bring an additional 57k to the closing table to pay down the loan to 33k. Your first mortgage is 90k.Utilities should be tenants responsibility. 2% vacancy is saying your tenant will live in the unit for over 4 years. I use 8%. Repairs of $27 per month is 1 repair per year. I use 5%. You have an HOA but what does it cover,It doesn't look like it is enough to cover roof replacement, looks like a special assessment coming up. My capex budget includes roof, floors, appliances and hot water heater, hvac and kitchen and bath remodel. I use a minimum of 10%. If the HOA has adequate reserves and cover exterior capex you could reduce it. Good luck on a 4% management, more like 10-12%. Insurance seems high, More likely $60 per month or less depending on if the HOA is responsible for some insurance.

Thank You, Tim, for that assessment. I'm currently in dealings with the owner to buy his old home from him. This is a rough estimation of what I came up with but by no means, it's the final state. Is there something more I could have done to make this look better? I also went full conservative on the prices seeing as I will be managing and renting out the home myself. 

Lastly, I'm not a full pro yet at the calculator so if there something I messed up please let me know. Thank you for responding and giving me insight into what I need to do to make myself better at analyzing deals. I greatly appreciate it!

best,

OZ

@Oz Ramos   Learn to tag people. Use the @ sign and start typing their name, double click their name and it will populate the comment box and they are notified.conservative means higher expenses not lower, so % must be higher. So all the townhomes in this complex sell for 360k, but your seller will sell it for 90k with 20k rehab. On s single family home the utilities will be in the tenants name.

@Tim Herman Yes, currently we are working on buying the property by having the seller become the bank. we've talked about two paths that will work for us. 
1. Rent to own
2. Use the owner as a bank for 6 months and then get a balloon Loan to payout the rest.  

What do you think so far?