Analyzing a potential Turnkey wholesale

[Jose Gandulla]

I analyzed this one property just to see what's out there. Any Feedback would be greatly appreciated.  Analysis: Townhome

3 bed 2.5 baths 1800sf rent ready(light cosmetic repair is optional) rent is 2000 a-month purchase price is 255k expenses come up to about 800 per month(property taxes, insurance, vacancy rate 10%, property management 10% and repairs 5%) leaving about $1200 cash flow. Cap rate is about 5.5%. In order for this to work it would have to be a cash purchase. If it were financed the cap rate would be negative resulting in a negative cash flow. Comps were pulled of zillow only sky view pictures were available.

Comp #1
3 bed 2 bath
1,770 sf
Sold 7/21/15
285k
Condition: Unknown
Comp#2
4 bed 2 bath
1173 sf
Sold 5/28/15
280k
Condition: unknown

[Ali Boone]

Any property that you have to say "this would have to be a cash deal for it to work" really means it's not a tremendous deal. 

That cap rate is pretty low, on a decently high purchase price, with the rents not really covering it, and on a property that still needs some work?

If this is an area you are set on or for some other reason this is the best of the options, maybe. But there are definitely better deals out there.