[Calc Review] Help me analyze this deal

[Tyler Leisher]

Hey everyone,

I am looking to get in on my first deal. Cold called this property owner who wants $150K for this 2 bedroom, 1 bathroom 928 square foot home. 

He says it's in good condition, could use AC and a heater, maybe some new siding but otherwise in good condition.

He has a renter there paying $1600 month to month who wants to stay but has no long term lease. 

Rental comps in the area suggest the average rent is $1280 for a house this big. 

At $1600, it cashflows ~$200. But if it drops to market rates of $1280, it drops -$58 or so.

What are your thoughts on this?

View report

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

[James Wilcox]

Quote from @Tyler Leisher:

Hey everyone,

I am looking to get in on my first deal. Cold called this property owner who wants $150K for this 2 bedroom, 1 bathroom 928 square foot home. 

He says it's in good condition, could use AC and a heater, maybe some new siding but otherwise in good condition.

He has a renter there paying $1600 month to month who wants to stay but has no long term lease. 

Rental comps in the area suggest the average rent is $1280 for a house this big. 

At $1600, it cashflows ~$200. But if it drops to market rates of $1280, it drops -$58 or so.

What are your thoughts on this?

View report

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

Don't know the age of the property but due to what you stated the price point I am going to guess it is a bit older. 5% for repairs and cap ex maybe low in that case. I would always factor in PM even if you plan to manage yourself.

You can still ask for a copy of the m2m lease to verify rental amount and what might be covered in that. Do an estoppel agreement if you want to verify rental amount if lease is not provided.