Numbers Game for "Deals"

[Nandish Parmar]

So, I have been analyzing "Deals" from wholesalers/MLS/fb groups but so far none of the numbers even come close to the 1% rule or the 70%ARV rule that everyone talks about.

I am from the DFW area and wanted to run numbers here for any numbers enthusiasts to tell me if I am doing anything wrong while running these numbers or the "Deals" are really that bad. My strategy is BRRRR.

This is the one that I analyzed today:

PP- 161,200

Rehab - 40,000 (Conservative)

Total cash needed - 201,200

ARV - 210,000 (conservative could reach 225,000)

Loan amount - 168,000 (80%)

Cash invested - 33,200

Estimated monthly rent - 1650

Fixed costs:

Mortgage- 766 (30 years at 3.625 with 80% of arv)

Insurance- 100

Tax- 481 - based on 2.75% of arv (texas)

Variable costs:

Vacancy at 5% - 83

Capex - 83

Opex - 83

Total costs - $1596

Monthly cash flow - $54

CoC return - 2%..

Please tell me if you use something similar? Also would love to see something similar for your cash flowing property that has atleast an 8% COC, along with your market information.