My first BRRR .... do these numbers make sense?

[Jane Johanson]

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[Chris Svendsen]

Not to be rude but are you looking to loose money on purpose for tax benefits of some sorts?  To me the numbers don't seem to make much sense.  I would assume after rehab taxes will go up substantially being property will be improved.  Is this a single family or multi-family unit?  Your estimating rent to come in on property of $1500 a month but your mortgage payment with insurance and taxes is going to be north of $2000 a month plus other expenses.  Not sure how you plan on making money on this property.  If planning on appreciation to make you money I would personally shy away from that option.  

Just doing a quick glance over numbers to me only thing I keep thinking is run away.  Give you an example of deal I am looking at now.  Purchase price at max would be $140,000, I need to put in zero money in rehab but will more than likely put in about 10K to attract some more tenants.  It is student housing so rents by the room.  Currently 3 Rooms rented for $485 a room, total of $1455 a month.  With all my expenses figured in plus mortgage I will be spending about $1000 a month, so cash flowing roughly $455 a month right of the bat.  Now once I do light rehab, and if can get 5 students in at $485 each my monthly income goes up to $2425, after expenses cash flow should be around $1425 a month.  Plus, after rehab value should be about $175k-180k so I can refi and get all money back if I chose to do so.  

Figured comparison may help but deal you put up I don't see how you are going to make money on it.  If I am missing something please give me some more details.  We all will gladly give you help however we can.