Help me analyze this deal

[Andrew Gaynor]

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

How does this analysis fare, I feel as though I used fairly conservative numbers.

[Greg Scott]

Andrew:

Seems like it could be a solid deal.  Here are some thoughts for you....

Looks like you are assuming only $7K out of pocket.  You should share more details on how you are financing this deal for everyone's benefit.  That was the most intriguing thing I noticed immediately.

Your expenses felt a bit light to me.  I would have a bit more in repairs, for sure.  Taxes also felt light but could be correct.  I also noticed there is nothing for property management.  That is fine if you are managing it yourself but I would put a cost in there anyway, as if you were hiring a manager. That gives you a truer picture of the deal.  You may not want to manage this one yourself forever and the guy that buys it from you might plan on hiring a manager.

What are your opportunities for increasing rent?   Is $1000/mo just the norm in the area?   Or, if you put some money into fixing up interiors or enhancing curb appeal, could you bump rents to $1200?    There may be more opportunity than shown in the calculator.

Good luck.