Would you do this deal or no deal?

Would you do this deal or no deal?

Investor · Saint Paul, MN · Member since 2016 · 5 posts · 3 votes

Hello BP community I want to give you guys a huge shout-out for all the resource you and this platform has given me. 

Here are the numbers I am running, would you do this deal or not?

Purchase Price:

$129,000.00

 duplex

Purchase Closing Costs:$2,500.00Estimated Repairs:$1,500.00Total Project Cost:$133,000.00After Repair Value:$129,000.00Down Payment:$32,250.00Loan Amount:$96,750.00Loan Points:$0.00

Amortized Over:15 years Loan Interest Rate:5.500%Monthly

P&I:$790.53Total Cash Needed
By Borrower:

$36,250.00

Monthly Expenses:
$1,519.86 Monthly Cashflow:
$325.14 Pro Forma Cap Rate:
10.38% NOI:
$13,388.00 Total Cash Needed:
$36,250.00 Cash on Cash ROI:
10.76%

Purchase Cap Rate:
10.38%

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  • Investor · Milwaukee, WI · Member since 2014 · 811 posts · 420 votes
    9y
    Your purchase price, closing costs, and repairs are higher than your ARV. I wouldn't buy it.
  • Investor · La Vernia, TX · Member since 2015 · 1k+ posts · 865 votes
    9y

    @Jackson Lee

    Is this a Turn-key property? Only $1,500 in Rehab. Purchase and ARV are the same?! What are you using for Comps to arrive at $129,000 for ARV? What are current Rents/Income for the property? Are they below Market rates? They would need to be below Market to justify paying more than ARV. Also it would help to see what you are including in your expenses. Without more details I would also pass on this too.

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