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Updated almost 5 years ago, 12/26/2019
Deal review Charlotte Flip, Rental, Avoid
A friend of mine discussed selling one of his rentals to me.
- Built in 1989
- Purchased in 2000 for 150k
- He wants 207K
- Rent 1400-1500
- Property hasnt been touched in 15 years... needs 20-25 to bring it to nice new standards
- Value tops out at 265k when complete.
- Doesnt seem like to ood of a deal but, I am wondering if this is just the type of deals available in the area right now.
Experienced opinions appreciated.
My estimates:
| Market Value | $ 260,000.00 |
| Price | $ 207,000.00 |
| Upfit | $ 20,000.00 |
| Down Payment | $ 50,000.00 |
| Taxes (Year) | $ 2,451.95 |
| Rent | $ 1,500.00 |
| Rate | 3.750% |
| HOA | $ (70.00) |
| Insurance | $ (1,300.00) |
| Term | 30 |
| Maint. | $ (100.00) |
| Principal Balance | $ 157,000.00 |
| Investment | $ 70,000.00 |
| Equity | $ 103,000.00 |
| Over Paying | |
| PMT | $ (727.09) |
| Management Fee | $ - |
| Net | $ 494.58 |
| Yearly Net Income | $ 5,934.90 |
| Taxes Month | $ (204.33) |
| Yearly Net Operating Income | $ 3,482.95 |
| Vacancy Rate | 8.33% |
| NOI with Vacancy | $ 3,192.71 |
| Cash on Cash (Are you getting a good ROI) great is 15% | 4.98% |
| 1% Rule (Is it a good investment generally?) | 0.72% |
| Cap Rate (How fast will it Payoff) | 1.54% |
| Equity to Revenue | 3% |