[Calc Review] Help me analyze this deal

[Everest Jordan]

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

Longer term goal is to buy and hold rentals.

This will be a first time investment.

Unit (1780 sq ft) needs all new carpet and paint. LP is 120 - 130k, APV = 150k 

I am looking to BRRR this with either 5% down (FHA loan) or put all cash offer (100k) and refinance (leave 20- 25% equity and pull out rest).

What would be better? 

Not getting 2% ROI in this market (DMV) but trying for at least 1.5 %.

Will I offend the seller/sellers' realtor if I put in a low ball cash offer (90k)?

[Ethan Grier]

For a SFR, you won't be able to qualify for an FHA loan due to not living in it - You'll need at least 20% down for a Freddie/Fannie conventional loan. As far as the ARV goes, I hate to break it to you, but that realtor is trying to sell this house, they're not necessarily on your team or giving you rock solid numbers. Unless the seller is extremely motivated, and willing to sell at 15% under market value (unlikely in current markets, though it might be true for your local market), the ARV likely won't be 150k. If all that was required to create 30k of equity is new paint and new carpets, every investor on this planet would be buying houses, repainting and re-carpeting them, and then selling. Easy 30k cash.

If you're serious about buying and have the funds to prove it, consider bringing on a buyers agent. They're someone thats going to be looking out for your best interest and can provide comps as well. Let them know your intentions about scaling (buying more rentals means more commission checks for them), and they should want to make sure you're able to continue doing business with them.