Rehab analysis, Denver

[Samuel Hall]

Hey folks, I am practicing my deal analysis and want some feedback. Are my methods sound, am I missing any information?

I went to the Denver foreclosure listing and picked a random property: 1592 SOUTH KRAMERIA STREET

$23,118.04 is owed on the property. I have an ARV of $374,507. The ARV was calculated using a house that was sold in the neighborhood I calculated price per sq foot on the comp and applied that to my subject property.

Knowing nothing about the property, I estimated 50K for repairs. I understand that this number can fluctuate wildly.

Taxes were pulled from public records. Insurance was calculated using this equation $6/$1,000 of ARV + $500 if unoccupied. I estimated 6 months holding time.

I estimated 200K as a purchase price which is 53.4% of ARV

Any other information is estimated. I can elaborate further on the numbers if necessary.

Thank you for your input!

After Repair Value $374,507

Purchase Price $200,000

Estimated Repair Costs $50,000

Total Financing Costs $0

Total Holding Costs $3,266

Total Buying Transaction Costs $1,900

Total Selling Transaction Costs $9,149

Total Annualized Cash on Cash Return 83.38%

Purchase + Rehab Return on Investment (ROI) 44.08%

Sources of information:0

https://www.denvergov.org/eforeclosures/QuickSearch/Details/72934?sname=OriginalNoteAmount&sorder=asc&page=1&rNum=20

http://www.zillow.com/homedetails/1509-S-Krameria-St-Denver-CO-80224/13408492_zpid/