Baltimore Deal Analysis Practice/Questions

[Account Closed]

Hey BP,

I came across this listing on Trulia, and I'm hoping that someone else can check my work.

I did my analysis on google sheets here, the result of which is that I expect a healthy cash-flow.

Overall, its $46k to purchase, maybe $5k in surprise fixes, $1200/mo rent, $400/mo expenses, $250/mo mortgage. Cash-flow is about $600/mo, and CoCR is 41% if I finance 20% down.

• Are these numbers reasonable for Baltimore?
• Is a 8.5% vacancy rate too pessimistic? What is typical of Baltimore?
• Did I miss or underestimate any of the expenses?
• What are typically provided utilities in Baltimore?

At the same time, I'm unsure about investing in an area with lots of section 8, bad schools, higher crime, etc. Investors that target these areas, what have your experiences been?

I'm still trying to narrow in on what my criteria are, so thanks for the help!

[Account Closed]

1. youre not paying 46, maybe out the door 46., but 46 is list.

2. water bill?? dont forget that hideousness

3. 1200 a month is going to be paid with a voucher, no market tenant is going to pay that here. and this is the massive variable in your formula. house doesnt look horrible, though definitely a half-hearted rehab (wire mold, poorly designed bathroom, carpet)

4. 4x4 isnt  bel air edision. this is in the 4x4