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Updated over 7 years ago,
help with deal analysis
I'm still just a noob when it comes to deal analysis I was looking to do the BRRRR method with a private loan and refi after 12 months. I think I'm doing something wrong. please help
the deal
purchase price: $12,000
repairs: $25,000
closing est: $3,500
ARV $85,000
repair should be 3 months but I put in 6 just to be on the safe side
rent goes for roughly $1250-1350 in this area
property taxes: $308 per month
estimated insurance: $65 per month
vacancy: 6%
Repairs and Maintenance: 7%
almost everything will be replaced in this house but I still added in Cap ex: 15%
I will be the property manager but I want to pay myself: 10%
after the refi I'm getting 59k to pay off my loan and I'm left with 19k in my pocket
I'm coming up with a cash flow of $85 per month
my big problem is that before the refi I'm -$641 cash flow per month
did I do this correct
any help would be greatly appreciated