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Updated over 7 years ago on . Most recent reply

User Stats

23
Posts
1
Votes
Roman McIntosh
  • Investor
  • Houston, TX
1
Votes |
23
Posts

Does this deal make sense?

Roman McIntosh
  • Investor
  • Houston, TX
Posted

The owner of the house across from my in-laws passed and his sons are going to put it on the market.We contacted the realtor and got a 10 option before it hit the MLS. From what we understand it just needs some paint before we could rent it out. Obviously we have to get inside and see what the true condition is. We plan to use private money to acquire and refinance after 6 months. The house is Highlands TX in a good neighborhood. I used the BRRRR calculator and can provide more info if needed.

If everything checks out and my numbers are correct is this a good deal?

Purchase price $100,000

Repairs $5,000

AVR $135,000

Monthly cash flow $103

ROI 12.74%

2% rule 1.22

Most Popular Reply

User Stats

3,177
Posts
1,999
Votes
Christopher Phillips
  • Real Estate Agent
  • Garden City, NY
1,999
Votes |
3,177
Posts
Christopher Phillips
  • Real Estate Agent
  • Garden City, NY
Replied

@Roman McIntosh

I'm going to say there isn't enough information. You haven't seen the inside. Older people pass away their homes tend to be super outdated. That would push your repairs up, reducing your ROI.

What are you other assumptions? Rent roll, vacancies, repairs, capex, PM?

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