Newbie Landlord Potential Deal - Need Support

[Mark Wilton]

Hi all,

As usual thanks so much for the continued support.

I have a deal under contract. Typically I rehab properties, working for a large volume company and manage the rehab systems.

The latest deal I have doesn't work within our Rehab model but am looking to use it as my first Rental would love some advice, as there is obviously alot more that goes into Rentals than Rehabs. I've also included two rehab options. Do I make it nicer to achieve a higher ARV or a rental ARV and achieve significantly lower ARV.

Numbers:

Purchase - $168,000 (Very small chance I could make it $165,000)

Full Rehab (Achieving Maximum ARV) - $78,000

Rehab Quality ARV - $320,000

Rental Rehab - $65,000

Rental ARV - $270,000

Rental Comps - $2000 - $2150 per month

Taxes - $4300

Insurance - $900

I'll look at 10% Vacancy, 12% Property Management, 12% Maintenance and 7% Cap Ex.

Tenants will typically pay for all Utilities.

Area is brilliant, close to Chicago itself in a desirable area.

I'm looking to partner with another Investor that will potentially buy all Cash - Purchase and Repairs.

I feel this could be a deal but could also use some reinforcement as to whether I'm on track or to let it go.

Anything else I've missed, please let me know.

Thanks everyone,