[Calc Review] Help me analyze this deal

[Anthony Heatley]

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This looks like a pretty good deal to me if I could stay on budget. There was one discrepancy about whether the house has 1 or 2 bathrooms but I can just call and ask, right? How much value does another bathroom add to a home on average?

I was also curious how the BRRRR strategy would work if you were to owner finance the home. Would it be possible to use a HML just for the repairs?

I'd appreciate any feedback, thanks!

[Jaysen Medhurst]

@Anthony Heatley, look up the property records with the town. It will tell you how many bathrooms and a bunch of other info. Also worth pulling past permits.

How much value an extra bath brings really depends on the area. Look for both 3/1 and 3/2 comps. This is as much art as science.

• You can probably pull the CapEx down to 7.5%, especially following a renovation.
• You're missing property taxes.
• Any utilities? I realize this would be a SFR, but good to confirm.
• 5% yearly increase in expenses, rents, value is very aggressive. I know Dallas is hot, but I don't think you can expect that to continue for 30 years.

HML could possibly be used for the repairs. They'll want you to have some skin in the game (~15% of purchase + reno) and you may have trouble if you've never done a flip or BRRRR before.

My gut tells me this doesn't work as a BRRRR, rent is too low. Maybe a straight-ahead flip? Especially, if you bring it from a 3/1 to a 3/2.