[Calc Review] Help me analyze this Fort Worth deal

[Claire H.]

View report

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

Okay. I've been analyzing a property most days, but this particular one is an actual possible deal. Moving on it would accelerate my timeline (I'm still working on my education and being comfortable with the numbers). 

Duplex, 2/1 in each unit. Built in the 1920s. Asking price $169k.

This property is not in the best neighborhood, which is okay. The seller has put in a ton of rehab work (one of the bathrooms and both of the kitchens still need work and there is some landscaping and trash removal that would be great). The seller moved to South America and wants to get this off his hands ("he's taking a huge loss but he wants to move this asset").

PROS:

• The mayor of FW is pouring money into this area so I think I'd be near the front of a gentrification.
• Its rehabbing is mostly complete.
• I can do most of what is left myself - from a rehab perspective (except for HVAC)
• Its crime is in the middle from Trulia's crime reporting
• Rent-o-meter and Craigslist make me think I can I can rent around $1k for each side
  

CONS:

• No HVAC at all. Not even window units
• Its crime is in the middle from Trulia's crime reporting
• Look at the surrounding prices... I'm not sure how to properly valuate this... even though the comps show that the price is correct-ish

How can you help?

• Does the asking price look reasonable, given the surrounding value of homes and the coming gentrification?
• Anything I've overlooked?
• I'm still not the best at all the calculator fields - any thoughts on what I've put in there? Any changes you can think of?
• Would you move forward with this? Reasons? - I would buy and hold, I would not refinance because I don't believe that the ARV would make it worth it... but maybe. IDK, thoughts on that too?

My RE Focus: Buy and hold multi-family homes/units/properties, as that is what I understand. In 2-4 years I'd like to expand that to include single-family residences and land.

GOALS:

• Replace my income with positive cash flow
• House hack (or not) in all the places I've wanted to live in the US (and maybe abroad) as a means for growing my portfolio after my income has been replaced
• Develop really great relationships
• Build a system that can work with minimal input from me
• Maintain frugality (MMM)
• Change my life
• Longterm - Invest in neighborhoods that need a lift
• Longterm - Provide shelter for homeless families and runaways

[Ryan Blake]

@Claire H. Your report looks good. The only number that jumped out at me is your property tax of $43/month. That is $516/year. This may be about right for a $26k valuation. When this changes hands it will be reassessed and you can bet it will be much closer to market price, around $150k or more based on zillow picture you posted. This would mean your property taxes would increase 6x making your new monthly $260 ($26k x 6 = $156k so $43 x 6 = $258). This is a super simple calculation but should be repetitively accurate. I just am bringing this up because I don't want to you to get a big unexpected bill and leave you under accrued.