0 down VA finance. Help me analyze this deal

[Mark Beeson]

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[Jaysen Medhurst]

@Mark Beeson, you ran the numbers with all the units rented out. You should also run them with living in one unit as you'll have to owner-occupy (for a while anyway) to use your VA benefit. This is a beautiful looking property. I'm a sucker for those old craftsmans, too. As far as the rest of your analysis:

• Closing costs are super high. I'd expect them to be 25% of that. Where did that number come from?
• Vacancy might be a bit low. I figure 8%, but this is super local.
• CapEx and repairs will probably be higher--15% combined. Being it's 100 years old, it could definitely be higher, even with the recent renovations.
• What about snow removal? It snows in Kansas, right?
• Any house electric?
• Budget for management (10%), even if you plan to self-manage in the beginning. This may be the deal killer. I don't see how you cash flow.

In the end, I don't see how this cash flows. If you want to live here and build equity/reduce living expenses, it may be worth considering. Of course, you an also try to get the place for a lot less. It's been on the market since August.