[Calc Review] Help me analyze this deal

[Ted Klein]

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Hello Fellow BP'rs, I have found this property that I think I can get for around 60k and the area comps in like size and year built are around 108k. It appears that the area rents are able to support $1000 per mo. This would be an initial cash purchase so no hard money costs.

 I haven't did the BRRRR process  yet, so I would like to have someone look it over to see if I have the inputs correct.

The problem I see, it that the monthly cashflow is only $143.00. It shows a 265% year one COC return and a 7080% annualized total return at year one. Hearing those numbers, it seems like a killer deal, but with the low cashflow it causes some concern. Would this be a good short term deal just to do the BRRRR and then sell it or should I be looking at this as a flip? My thoughts are there isn't enough margin at 60k purchase.

Any Advise Please?? Thanks

[John Leavelle]

@Ted Klein

Sounds like have everything under control.  I agree about the opportunity cost.  Ideally we want to be able to reuse the same bucket of money over and over.  If you keep leaving some in each deal that bucket will eventually run empty.