It's my first BRRR analysis that actually shows cash flow potential. I'm trying to figure out why this is still on the market (almost 2 months) or where I have plugged in unrealistic numbers. I am a real estate agent, so buy/sell costs are lower. I'm basing my rental rate on college student renters at $300-$350 per room. So maybe I should have plugged in higher recurring repair costs!! Thanks for looking!
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It looks like you're purchasing this property with all cash. So you'll be $99,900 in the deal which includes repairs. What is your assumption for your cash-out financing LTV to have a $90,000 mortgage on the property? I would assume a 75% LTV which would allow you to cash-out $86,250 on the $115,000 ARV. You'll be leaving $13,650 in the deal which is still a good deal in my opinion (24.5% COC). With that being said I would really dive into due diligence when it comes to rehab costs, ARV, and rental income. The numbers are tight so any big swing for any of those assumptions can hurt you.
Your expense assumptions look okay to me. I think 10% for R&M and CAPEX could be considered conservative given the fact you're investing $34,000 in rehab upfront. Less likely things will go wrong with new systems, etc. With that being said I'd keep your assumptions as-is. I always like to be conservative with my numbers.
Feel free to reach out if you want to do a deeper dive.
@Brian Hendrie Thanks so much for this feedback! I think I'm aiming too high on the rents, but it will be interesting to dig deeper into this one. Might take a tour this weekend. To be continued!