[Calc Review] Help me analyze this deal

[Oliver Pham]

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good afternoon, I found this property in Houston, Texas which look quite nice on paper. I am very interested to put down an offer. What do you think about this deal? Thank you very much and have a great day!

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

[Kevin Sobilo]

Here is what I see in your analysis:

1. You only have 3% vacancy which is pretty low. Most people estimate 5%.

2. You don't have any values for maintenance or capital expenses. Generally people estimate 5% each or 10% total.

3. Your insurance costs look high for a house in that price range. I would expect something in the $75-100 range in my area.

4. Even if you prefer not to include any utilities often as a landlord you are better off including utilities provided by the municipality. For example in my area many municipalities provide garbage and also sewer at a fixed price. If unpaid those become liens on the property so having a tenant pay directly doesn't make sense. So, I include those utilities.