Deal Analysis Help Please

[Ben McFarland]

I am looking at a small house to BRRRR. They seller is asking 45k need 30k in rehab. Rent in the area for like houses would be $850. Altering looking at things considering cash offer if 35k for property. Taxes and such very cheap in the area. What's your thoughts?

[Zach Rucker]

@Ben McFarland

Ok sounds good. I usually make sure to have 5% for property management fees when I self manage to cover travel and other fees I use to manage it.

So to analyze,

Take rent - vacancy - maintenance - property management - (future) mortgage payment = cash flow

Let's say 850-.05(850)-.05(850)-.05(850)- around $300 = 422.50.

That is your cash flow after you rehab and refinance.