[Calc Review] Help me analyze this deal

[Devonte Jones]

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[Jaysen Medhurst]

Hi, @Devonte Jones. I think you need to re-run the numbers on this one. I'm assuming this is SFR and won't require expenses for water/sewer, lawn care, snow removal, and house utilities.

As far as your analysis:

• Fix your ARV. I don't think it's $14k...
• Closing costs might be low. U.S. average is $4-4.5k. This is local, though.
• Include an initial repair budget. There's always something!
• Repairs are way too low and you're missing CapEx altogether. I use 15% combined in my underwriting.
• You're missing management (10-12%). Always include this in your underwriting, even if you plan to self-manage at first.
• Your interest rate is probably a little optimistic for a non-owner occupied property. I'd expect 4.5-5%. It's worth calling around to all your local banks and CUs.

My numbers put you at ~$125/month cash flow and a CoC ROI of <5%. That would be a hard pass from me.