[Calc Review] Help me analyze this deal

[Colin Charles]

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I'm doing the 90 day real estate challenge. I found a potential investment property and I would like help with the analysis. The asking price is 90,000. I estimated the property needs about 20k of work. I plan to use a hard money lender and I will use 15k of my own cash to secure the deal.

ARV - 155,000

Asking price - 90,000

Purchase price - 70000

Estimated repairs - 20,000 

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

[Mark Costa]

A few quick observations off the jump. The closing costs are light. You have property taxes of 2000  and insurance of 276/yr (which seems low). With survey, lawyers' fees, title search you are over 3k and that is without finance points. Remember, a refinance involves more finance costs as well.

On cash flow projections, the CapEx and expenditures are low. Maybe you feel comfortable because you are rehabbing the property. But 20k does not suggest a major rehab so you should have to budget more for major systems.