2/1 Deal Analysis (First time investor)

[Drew Purvis]

First time investor here looking for some input on a SFR buy and hold property. I am looking to use the BRRR strategy on this property. I am using private money to fund the deal and would repay once the refinance portion is in place.

2 Bed/1 Bath

Offered: $21,000 all cash, no inspection contingency

Closing Costs: $1,500

Taxes Current Year: $1,800

Needed rehabs(Estimated): 

- Fix grade issue $300

- Demo and remove patio $500

- Demo and remove moldy drywall in basement $150

- Repair basement cracks/seal/paint $500

- Dehumidifier $300

- Paint interior $300

- Paint Exterior $200

- Add/repair downspouts $500

- Replace boiler $3,000

- Replace siding on carport $400

- MISC Electrical $350

- MISC/Oversights $1,000

TOTAL Rehabs: $7,500

ALL IN TOTAL: $31,800

Comparables in the area are around 45k-48k on average. Some upwards of 56k. Market rent is conservatively $750/month but I would likely target a rent of $800/month. A craigslist search turns up many "renovated" 2/1 houses at $800-$825/month rent. After getting unit rented and refinanced, here are how the numbers should shake out:

Looks to be about $158 cash flow per month. However, as stated, I would target an $800/month rent and I would also manage the property myself so the numbers should look even better.

Thoughts?