Is this a good or bad deal?

3 Replies


Closing costs 4,650.00

Rehab costs 7,000.00 for roof kitchen and flooring

5% interest rate

Monthly rental income 1,400.00

Monthly taxes 420.00

4.4% Cash-on-cash ROI

8.6% total ROI

155.00 cash flow

Good or bad deal?

@Christian Barraza

Have you factored in insurance and repairs and maintenance? If you have tenants that stay for 1 year at a time and then you need to; repaint, clean and re-rent; any profits you made during the year will be spent between not collecting rent for a month and the make ready.

The deal looks poor to me, but could you provide a more comprehensive list of expenses? It appears you may not be factoring some things in. Please let us know how the property was appreciating before the pandemic in that area.