[Calc Review] Help me analyze this deal, thinking cashflow missin

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  • Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
    6y

    @Jake Waslaski, I think you need to rework your numbers a bit.

    • I use 15% combined for Repairs and CapEx. $25k renovation isn't going to mitigate those costs too much over time.
    • Insurance looks VERY low. I would expect 4X-6X that amount. Talk with a local insurance agent.
    • Interest rate will probably be a little higher.
    • You're forgetting Management (10-12%). Always include Management, even if you plan to self-manage at first.

    I think it will be very difficult to cash flow this property. The price-to-value ratio is bit too far out of whack. Might be better as a flip where you can make $25-30k.

  • Rental Property Investor · Seattle, WA · Member since 2018 · 18 posts · 5 votes
    6y

    @Jaysen Medhurst

    Appreciate the reply I’ll rework the numbers and go from there. Thank you

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