Quick deal analysis

[Walter Parker]

$350,000 deal, just hit the market, place has some value add that could raise rent. Current rent would be about $2500 a month for 4 bedroom.. I’m a first time investor in something like this. Is this a good deal? The 2%, 50%, 70% rule seems to check out. What’s the play here?

[Tim Herman]

@Walter Parker You do what you want. I used your numbers and it was a bad deal. You are revising your numbers to make it appear to be a deal. Let's use these numbers. DP 60K + closing costs 3% or 9K + 15k rehab= 84k Rounded mortgage to $1200 monthly, so clear $300 or $3600/$84000= 4.2% return on cash. You can get almost 2% in a money market and no tenant headaches.