[Calc Review] Help me analyze this deal

[Luwani N.]

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

Good day to everyone in BP!

Here is a 3-2 that I did a practice analysis on to see. I checked the value of the other comparable houses in the area the lowest appraised was for 135k. I used a combination of zillow's map feature and the county's tax appraisal records. In another report, I have analyzed the property at 70% of this purchase price but for now I wanted to see if the deal still made sense with the price they requested. 

Please give your honest critique and tell me where I can improve.

[Jaysen Medhurst]

@Luwani N., if your rent and ARV numbers are accurate, this may have legs. Considering the amount of work required, though, you should come at it like a BRRRR. Aim to pull all of your capital at refi. That means getting this for closer to $50k.

As far as your analysis:

• $1k closing costs is very low. Talk with a local lender.
• Vacancy is high. SFR is usually closer to 5%.
• Repairs and CapEx are high. You can pull down to 15% combined, especially after a hefty renovation.
• Management at 3% is a pipe dream. You'll pay 10-12%.
• Insurance might be high. I'd expect closer to $50/month, but you should talk with a local insurance agent to be sure.
• If you're nearly doubling the value, you should expect the taxes to go up.

My guess is that if you BRRRR this property, you can cash flow ~$200/month. Pretty solid, especially if you can pull all of your money out at refi.