[Calc Review] Help me analyze this deal

[Stephen Sokolow]

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

[Jaysen Medhurst]

How confident are you in the rent on this property, @Stephen Sokolow. This is way above a 2%-deal property and those are very, very hard to come by in today's market.

As far as the analysis:

• Closing costs look low. Verify with your local lender.
• This place needs way more than $1k for initial repairs. That front path is a mess. I see visible rot on some of the exterior. Needs paint. You need a realistic budget for renovations.
• Vacancy looks low. I use 8% in my underwriting. You may want to go a little higher even.
• Repairs and CapEx are low. I'd probably use 20% combined considering the low rents and probable tenant class.
• What about water/sewer, snow removal, lawn care, and admin/professional fees?
• Is the unit above the garage a legal unit? I'd triple check this.
• Do you have a lender that will do a mortgage this small? Many don't like to go below a certain value.

My (admittedly conservative) underwriting puts this ~$200/month cash flow. That's still ~22% CoC ROI. If those numbers hold, you should be buying every one of these you can find.