Buy Fix Hold Deal Analysis and Structure

[Jeff V.]

Hello Fellow Investors,

So I have a potential deal and curious if I could bounce it off you guys/gals.

Here are the numbers:

4/2 1600 sq ft. 

Excellent Neighborhood Plenty of Tenants and quick Rentals at Market Rate

Asking Price - 65k

Est Repairs - 30k

Market Rent - 1200 - 1300

ARV - $123k conservatively (Comps run up to 150k lowest being 123k)

VA REO Foreclosure

Assets available to leverage:

8k Cash

100k LOC 6% Interest Only

Ability to obtain Traditional Financing on Completed Property and/or purchase. (Good Credit multiple Partners)

Exit strategy - Rental (For this Analysis)

Goals - Cashflow and to provide 20% Cash on Cash Return

So my questions are:

What would your MAO be for this Rental Deal?

Once you determine MAO how do you come up with a "Starting Point" for negotiations?

If you use something other than Cash on Cash Return to determine if it's a DEAL what indicators do you use?

In your Opinion is this a DEAL given the assumptions in the scenario are accurate?

How would you structure this deal given the "ASSETS" that are available to leverage the deal to provide the best returns?

If you were currently in the GROWTH phase of your business would you be Focus on Cash Flow or Equity Growth and why?

Any advice on this (possible) deal or in general area of deal structure, analysis and the early phases of business start up would be greatly appreciated.

What are your thoughts?