First Deal analysis Tyler, TX

[Grant Merrill]

https://www.biggerpockets.com/calculators/shared/7...

This is the first deal that I looked at where the numbers actually work. I'm excited and a little cautious. Being the first time, I'm pretty sure that I have missed something, probably a lot of things. I'd like to learn from those mistakes and make the next analysis even better. 

Thanks in advance for your time.

Grant

[John Leavelle]

Howdy @Grant Merrill

You do have errors in your analysis. However, it can still be a good deal. As mentioned your financing is off. With a 20% down payment ($29,000) your loan amount goes down to $116,000. At 4% APR your mortgage payment is approximately $554. Your Cash Flow (using the 50% rule) is now $230.50. You did not include CapEx which would almost eliminate the Cash Flow in your analysis. That's why I am going with the 50% rule.

Love Tyler by the way.