Advice for analysis on military house hacking deal

[Richard Cook]

Hey All, 

So I'll be stationed at Sheppard AFB in Wichita Falls, TX this March. Went out to look at houses and this one looked like our strongest shot. Because I am out of state and the market of newer homes (that would meetmy wife's criteria lol) at SAFB is limited, we were really constrained on what houses we could look at. I ran the numbers on this one, and was wondering what you all thought. I put in a picture of my excel spreadsheet that I used on BP (Link) 

A couple of things:

This house is essentially move in ready - if I were able to flip, I would love to preserve some equity. However, due to our time frame it's just not feasible. I do have a motivated seller and the asking price is down to the tax assessed value of $145. The remainder of costs are my part of closing and "make it mine" costs. 

We will be living in TX at least for a year so we will be getting the equity from that. After leaving, we would be renting it out. Current market rents are at least $1400, possibly higher if we put in a little sweat equity while we were there.

I know it's not cash flowing great, but it is really close to the base which has a good pool of tenants. As such, I expect my repairs cost and vacancy to be lower (will be going with home warranty $500/yr), other portion of repairs will deal with tenants induced repairs and carpet replacements etc... Some of that cost is also absorbed into my CapEx

I'm pretty sure these are all worst case numbers so at the current stage of negotiations, if I accepted, I am going to at least break even, barring no catastrophes. 

Any other military landlords want to chime in on if I'm missing anything or opinions? Thanks in advance! 

@Elizabeth Colegrove @Darrin Carey @Christina Carey 

[Cori Bryan]

if you are looking at the house on Reyes...thats a great rental property by base. I'd try to get it for 145K and have them pay 3K CC, but I saw what they paid- so you may be stuck where you are at because they can't bring money to the table.

I would add granite, backsplash and laminate to living room where carpet it...do it right away so you can enjoy it. It'll help it sell faster on back end...But don't do much more or you won't see that money back

4 bedroom by base thats new like that...$1400 is definitely doable

I wouldn't hire property manager- just post it on military by owner and ahrn.com and your vacany rate will be low. Unless you pcs overseas- your home warranty will help you manage from afar. Put a code on front door and tenants can leave keys behind with easy access to other tenants. Also gain yourself good cleaning person contact info when you are here. Use old republic home warranty- they are by far the best here.

Tax value doesn't mean much everywhere else, but it surprisingly does around here. So glad you aren't paying over tax value.

Good luck!

holler if you have any specific questions, but I am sure your realtor is taking good care of you