Help me analyze this deal

[Joel Mitchell]

View report

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

The plan is to rent for five years and refinance or sell for a profit of $23,000 on a near no money down deal.

[Peter Antipatis]

Are you financing 100% of this purchase?  As it is, it looks pretty tight; enough so that even relatively slight deviations from your assumptions can derail the deal.  (As evidenced by the 50% rule result)

Keep in mind the more leveraged, the more critical it is that the underwriting is well researched

Also, typically at 100% financing, there should be a pretty good cushion built into the deal.  

Are you relying on seller's representation that you can get 950 a side?  

Just because the BP calculators say you will profit on sale about $23,000 five years from now, there is absolutely no guarantee that will happen.  We could be in the depths of a buyers market at that time.