[Calc Review] Help me analyze this deal

[Terry Dunlap]

Hi all! This is my first real opportunity since joining to use the calculator to assist in analyzing a deal.

Property is listed for $69,900. But agent feels between $52,500 - $55,000 is more appropriate based on recent sales in the neighborhood. Property disclosure form indicated "dampness around basement walls during heavy rains." My first property had this issue. It took $10K to fix it. So I assumed the same $10K CapEx here as well.

This is a long-term buy & hold property (5+ years) looking to generate positive cash flow and deductions for tax purposes (accountant says we need more deductions).

Rentometer claims around $825-$850 is a decent rent. Property manager thinks $750 might be the max. Not sure where Rentometer pulls its rental info, but property manager thought it looked inflated.

According to Trulia, the area has seen a steady 3% annual growth in property values. Property manager has been able to obtain between 4%-6% annual rent increases.

So... what do you think?

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