What am I missing? This deal looks too good to be true. Low cash upfront, renter in place, rent is almost 2% of supposed ARV...there must be more to the story, right? Otherwise this thing would have sold already. Conversely, 3780 Huntwicke Blvd, Davenport, FL 33837 looks like you'd need to sink at least 35-50k in cash (repairs plus downpayment) to get cashflow with a property manager (BRRRR).
*This link comes directly from our calculators, based on information input by the member who posted.
@Alex R. I am a local realtor tell me more about this property. I see this in the MLS showing pending with a list price of 156k. Your calculator is showing a purchase price of 48k so not really sure what the real numbers are. Also ARV for this would be 195k in the high side of things. I actually think this might not be a bad deal but the number I can see in your link don't make any sense to me.
Hi @Tyler Gibson , thanks for your insight. Sorry for making things confusing. The property analysis is for a different one ($48k in Bartow, FL on the BP marketplace: https://www.biggerpockets.com/...). I picked that one as an example, because it seems to look good on the surface, and it also appears to be simple. Tenant in place, 2% rule met, minimal repairs needed, low upfront cost...what could go wrong, right? That's why the subject is that there must be more to the story on that one.
The Huntwicke property is one that I was actually interested in, but the rental property analyzer didn't really have the tools to analyze something with the amount of repairs needed. I was looking at it from the perspective of a hard money loan to purchase and renovate, then refinance and rent it out. I tried looking at it from the vacation rental angle (with and without adding a pool), and then I also looked at it from a long-term rental perspective.
I used $226,000 for the ARV, because my renovation plan included adding a bedroom in the garage. 623 Nicholson Dr sold for 226k right around the time I was running the numbers, and there are other similar recent sales to support that price (given proper renovations and good staging).
I'll be very interested to see what the sales price is on Huntwicke. I'm trying to figure out how to do a "no" money down deal without house hacking, but it seems like these distressed properties don't have prices as low as I'd expect based on the repairs that appear to be required. A small downpayment or funding some repairs out of pocket could be doable for me, but to get in the game right now the rest would need to be financed.