evaluation of a property

[Ryan Shafer]

Hello, 

I need help evaluating a property in the Toledo, Ohio area asap! It's a duplex in a nice city with a great school district. Purchase price 200k. worth approx 220k. Nicest house in the area. It needs absolutely nothing. Its already rented at $1250 per side per month total $2500 month. It has potential for rents at $1400 per side. I plugged it into the BP calculator but forgot all the numbers. I'm just being cautious. The BP calculator said eventual would be worth approx 370k maybe. It has good cash flow but is the equity ok? I love the property but it really doesn't look great to BRRR or does it? Its ready to go, cash flows nice! Any help asap would be great. The seller will carry back half the down payment. Is this something I could draw the equity out in ? A HELOC or something? equity includes the down payment too correct? I know that"s a stupid question! I assume yes. I am still learning so forgive me. I can only do so much research and podcast in a day. PLease help asap!

[Joe Villeneuve]

First, let's take all the parts of what you wrote out that mean nothing, and rewrite it with all the important things needed to answer your question,  Then, we'll add in all the items that are missing/needed to answer your question:

Asking Price = $200k
Worth = $220k (based on what)?
Rent = $2500/month
The rest of what you wrote are things you would put on your description if you were selling or renting the property...not buying it as a Landlord.  Using them here is just reinforcing what the seller is telling you, which means you're just helping them sell the property to you.

Now, what was left out:

Taxes = $?/month
Insurance = $?/month
Terms for loan = ?% interest rate; ## years amortized
Down Payment = ?% of purchase price