Struggling to analyse my first deal in Lansing Michigan

[James Dean-Howell]

I'm trying to analyse my first deal in Lansing Michigan but I'm having a hard time with the numbers. I'm not sure how to find accurate or near accurate numbers. I've never analysed a deal before. I tried to use the biggerpockets calculator but for a lot of the values I simply don't know what value to put in for my area. 

I'm looking at a 4 bed, 2 bath SFR. It is currently renting at $973. It was purchased in 2010 for 35,000. I'm using Propstream for analysis and I'm not sure how accurate their numbers are. Average comps are showing $73,687.

Estimated value of the property is 74,963. 

I don't know how to estimate costs accurately. I don't know what my potential mortgage terms will be. I'm not sure what the ARV would be on a house currently being rented out. I haven't been to the property but I wanted to be able to have a ballpark idea of what I could expect in returns from the property before visiting. The seller isn't very motivated to sell but they are "open to offers."

I have no idea what the estimated repair costs would be without visiting the property. No idea what to put as the closing costs. 

What's the downpayment typically on a standard 30 year fixed mortgage in my area? Average loan interest rate? 

How do I find the average cap. 

How do I estimate monthly insurance accurately? Elecricity, Water & Sewer, Garbage. 

Repairs & Maintense, Vacancy, and management fees seem to be pretty fleshed out in the calculator. Also I might be able to do cap Ex but I don't see how I can without actually going to inspect the property. 

How do I find these numbers for my area? I typically learn best by someone walking me through processes step by step but I don't know anyone who would be willing to do that. 

[David Hall]

There are a lot of variables here, you may just need more info.

Insurance I would expect to be $800.  Could be less, could be more depending on value, sq ft, coverage, carrier.

Repairs you won't know unless you walk it.  But you can gain a lot by asking the seller what they've done and what it needs.  If it is licensed as a rental that will help you understand that plumbing, HVAC and electrical are at least functional and up to rental authority code.

SFH don't really go off a CAP. Most investors I know want $200 a month cash flow and a certain percentage Cash on Cash return. 10-20%.

Utilities you'll have to guestimate or ask the seller if they have this info. But on a SFH tenants most likely are paying all these items.

10% Property Management

10% Repairs/Maintenance (Depending)

10% CapEx (Depending)

10% Vacancy (Depending)

These all vary, but if you run these numbers and can get a good return it may be worth walking through.  The ideal buy and hold DEAL is a home that doesn't need repairs and it just under valued.  An investor and buy it, rent it and have no issues.  The ideal FLIP is something that an investor can make 30% or greater on.  

Beware, there are several areas in Lansing that don't sell fast. Your ARV in these areas is worthless unless there are short DOM. I often look at DOM first and if I can move it quick, then I look at projected return or a plan B. Often I'll flip a property, with the intention of listing it for sale for a month or two. If it doesn't sell I'll rent it, refinance it and do it again.

Hope that helps.