[Calc Review] Help me analyze this deal

[Dee Brock]

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[Jaysen Medhurst]

Hi, @Dee Brock. This might have legs. A few questions/things to consider:

• Is your HML okay with you having no money in this deal? Typically, the like to see at least 15% of the purchase price down.
• You really want to get this for something closer to $100k, if you don't want to leave any money in the deal.
• You're very unlikely to find a lender who will refi at 85% LTV as you've indicated in your analysis.
• Your vacancy might be a little low. I usually use 8% for MFR. Very location dependent, though.
• Repairs and CapEx are way too low. I use 15% combined. You might see some decreased expenses following the reno, but $20k isn't a ton of money. I all evens out over time.
• What about water/sewer, lawn care, snow removal, any other shared utilities, and admin/professional costs?

I think your monthly cash flow will more likely be $150-200. Not a home run, but pretty good if you're not leaving any money in the deal.