[Calc Review] Help me analyze this deal

[Michael Temple]

I would love to get some opinions from some experienced investors. I am considering this for a buy and hold. Some other factors to consider. It has all new windows throughout. The yard is a nice size. It is a "C" Class neighborhood. Values are unlikely to rise much. It currently rents for $650, but I think I could get $700 for it.

The house is actually in decent condition. It needs a little TLC, but certainly not horrible by any stretch. A potential big disadvantage is the age of the HVAC (1993) and Water Heater (1996) and the garage (detached) will need a roof before too long (within 3 years) Inside isn't bad, could use some paint and few other improvements.

To me the numbers don't really work where they are right now, but that is why I want to get some other opinions. The cash flow seems very tight. Expenses are a bit high with the taxes being almost $1500 per year.

My main question(s)

1. What should the price be to make this a more exciting deal?

2. Would you do this deal if you were me? Why or why not?

View report

*This link comes directly from our calculators, based on information input by the member who posted.

[David Light]

I wouldn't do it. The after repair value is less than the cost of the house plus repairs and the cash on cash return is too low for me. I aim for houses that I can refinance after repairs and get most of my money out of and a 12% cash on cash return.