[Calc Review] Help me analyze this deal

[Randy Reyes]

View report

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

[Jacob Sampson]

WAYYYY to expensive for $1300 in monthly income.  And your %s for vacancy, capex, and maint are low.  I use 30% for those 3 items.

[Randy Reyes]

Hi @Jacob Sampson i was trying to put more info in regarding the deal. One unit is currently occupied and this is going to be a house hack. I know they #’s aren’t positive cash right now but upon moving out and renting the 2nd unit it will also be $1,000m. So $2,000m combined units 

[Scott Rogers]

@Randy Reyes  For a straight cash flowing rental property $2,000 would not be enough for me (unless appreciation is a contributing factor). If it's a true house hack where you are using it to subsidize your living expenses then it might be ok.  Although I would prefer a cheaper price point that needed some forced appreciation through renovation. For the calculations, as @Jacob Sampson mentioned, 15% for vac/cap/maint is not enough.  I use between 20-35% depending on the age of the house, age of systems and management.  Best wishes.

[Randy Reyes]

@Scott Rogers yes it would be a house hack for taking advantage of the conventional loan, and adding some forced appreciate through renovations on both units. But thank y’all a lot for the opinions and input. 🙏

[Jacob Sampson]

I agree with @Scott Rogers this won't ever be a cash flowing property at that purchase price.

[Dennis M.]

No lousy deal

[Matt M.]

@Randy Reyes

It’s a pass for me