Revised BRRRR outside of Raleigh

[Ashley Rummage]

View report

I feel like I am missing something....I think this could be a decent first property in an area that is increasing in value and very close to downtown Raleigh. It needs some cosmetic love but HVAC and roof are new and it is single level, brick home 3/2. Thank you for any input :) 

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

[Jiri B.]

@Ashley Rummage To be honestly, getting any SFH under 150k in Raleigh is very rare. Looks like yours would be in Garner, so that seems ok.

Here are some of the items that seems a little off on your report.

- 1300/mo rent in Garner for this type of property is a little too high, i would rather go with 1200/mo for the calculations.

- closing cost 8k? Should not really cost you more then 4-5k on 135k purchase

- downpayment should be at least 20% for investment property, your is about 15%

- 30 years amortized loan at 4.5% does not look like an investment property, so im guessing you are looking at the wrong loan or planning to live in it for a year?

- Also if you are rehabbing home, you won't have much repairs or at least should not have much repairs for few years at least.

- 5% vacancy seems a little too low as well, i would go with 15% to be on the safe side.

- Unless your 30k is cash, you will be also paying interest on that as well.

- 3 months fix timeframe is ok if you know what you are doing and depending on the amount of work, i would rather go with 6 months.

But overall it looks good. I have not seen the home and have no idea about the overall shape or the exact location though so just stating all this based on what you have provided. 

Also if the home is on septic tank and or well, would also add more cost and maintenance.

Hope this helps.

Jiri