[Calc Review] Help me analyze this deal

[Anthony W.]

Just finished watching the past webinar on analyzing deals by @Brandon Turner assuming I did it right. Tell me do you think this is a good deal or bad deal. I got it from Zillow.com. This is the area that I will be living in. I have multiple ways to finance this deal.

View report

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

[Art P.]

@Anthony W. : 

To add/clarify all the points @Jaysen Medhurst mentioned above, based on this report, given your estimates in the report, both Interest rate on the loan and down payment will be higher for an investment property. I would use the figures @Jaysen Medhurst provided as a starting point. Cash to close and repairs will most likely be upwards of $36,500. 

With the following assumptions, 5% interest, $116k mortgage, insurance $450 a year, everything else equal. You are still looking to cash flow ~$525. CoC ROI is still 17.2% which is great.

Items to consider:

• Yard maintenance - I normally have a clause in my lease that the tenant is responsible for yard maintenance on their respective plots.
• Water/sewer cost - Identify who is responsible and add/remove expense as needed.
• Owner occupied route - add in PMI (0.85% of loan amount per year if under 90% LTV) if paying less than 20% down and adjust interest rate as needed.
• Near Future capital expenditures - have inspections been performed? Things you may not see can hit your bottom line like damaged sewer lines, and pests. Walk through with a trusted contractor/plumber.