[Property/Calc Review] 5bd/2.75ba 3,072 sqft

[Jeremy Pearson]

I am doing an analysis for a pre-forclosure in Renton, WA. I am looking for a little more than just a calculation review though. I would appreciate if someone with a little experience in this area could let me know if there is something I am missing about the property because it seems like a really good deal, but has been listed on Zillow for almost a year.

I guess I am just a little skeptical and curious if anyone else sees flaws with this property by just looking at the Zillow link.

It also seems like a 70% house flip rule would be more than the asking price as shown in my analysis. This would give an instant equity of around 2x the property value, so why is this property so cheap?

Property link - Screenshot in case of removal

Spreadsheet analysis screenshot

Assumptions in my calculation:

1.) I would be house hacking, staying in the Master Bedroom.

2.) Rent could be anywhere from $500-600 for a room in the area, so to keep stay within certain filters and still be the cheapest on the market, I put $590.

3.) Room renters would have Water/Sewer/Garbage and electricity included

4.) Although I haven't seen the property, it looks like it could do with quite a bit of lipstick. Assuming the foundation, electrical and plumbing systems are good, I estimated around $20k for rehab.

5.) Comps for a 5 bedroom 2+ bath in the same area estimate the final value above 500k, but I put it there to be safe.

6.) Using an FHA loan while house hacking, I estimated a down payment at 3.5%.

Any input would be much appreciated. Thank you!