Rental Property Investor · Raleigh, NC · Member since 2018 · 179 posts · 192 votes
8y
CoC return looks good. After your refi you're only into the deal for $1,342.81. Times your monthly after-refi cash flow of $468 by 12 and divide that by your $1,342.81 and you've got a CoC return of 418.22%. Remember that when refi your taking out almost all of the original $52,600 you had in the deal.
Rental Property Investor · Raleigh, NC · Member since 2018 · 179 posts · 192 votes
8y
On paper, Justin, yes it looks like a good deal. However, two things are going to make your project a success or failure: (1) Your ARV is realistic and (2) You don't go over budget on the demo. if you haven't done so already, reach out to a broker and/or experienced investor in your area and ask them their opinion on the ARV. On the reno budget side, identify in what areas you can invest some sweat equity. Painting, landscaping, and other simple jobs like that can help keep your costs under control. If you have the time and skills decide how much of yourself can put into the project. Finally, expect the unexpected. Once you start the demo any number of issues can come up. Mentally prepare yourself to spend another 10 to 20% repairing stuff that wasn't obvious at the beginning. And, finally, don't fall in love with the project and over do it. Remember, you're not planning to live in it. Do you have to do to get to your ARV and get it rented quickly - no more or less than that. Best of luck.