Help me analyze this deal

[Nicole Harrington]

View report

*This link comes directly from our calculators, based on information input by the member who posted.

[Kevin Sobilo]

@Nicole Harrington, I think you did a pretty good job with the calculator. I do think your 10% vacancy estimation is too high. I use 5% and believe in reality than I can do better than that, but I also think your maintenance and capex are too low. So, overall those 3 even out in the end.

One question, why are you only refinancing out $147k. If your ARV is $245k, then you should be able to refinance out at least $183,750 based on a 75% LTV.

Overall, I don't think this is a sexy deal at all. A lot of cash invested, plus work to rehab for a modest return. It isn't bad, but this isn't the kind of return I would ever be interested in.

You would be leaving about $75k in this deal for $400 per month cashflow. I would want 4x times that much maybe more for that kind of money invested in a buy & hold.