[Calc Review] Help me analyze this deal

[Ramon Almonte]

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*This link comes directly from our calculators, based on information input by the member who posted.

Did I add the right numbers?

[Tim Herman]

@Ramon Almonte unlikely you are using the correct numbers as you are just using a percentage. You need to do a budget for capex and repairs. Taxes may go up on a purchase to reflect the new arv.  Here is a simple repair budget. Cost to rehab on turnover + the cost of repairs over a certain timeline. If we use 5% vacancy that is 20  month average. I figure 1 repair per year so 1.5 for 20 months. My average cost is $150 so for the 20 months $225. What will it cost you to do a turnover. Since you didn't specify the size of the 1 bedrooms I will use $1000 for cleaning and repainting. $1250/20 months =$62.50 per unit per month for the 1 bedroom and more for the 2 bedroom. The 3 1 bedroom units already exceed your budget. I missed the dp is less than 20% so you will have pmi added to the mortgage. To do a capex budget is the same. Find the lifespan of the major components of a house and add up how much monthly you need to save. If you have a 100 cash flowing units you won't have to have a reserve.