Anyone familiar with Middletown CT?? Help me analyze this deal.

[James H.]

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[Jaysen Medhurst]

@James H., this property may have legs. A few questions before I offer some suggestions on your analysis:

• Is this analysis based on it being a pure investment property (i.e., after you move out)? Always run your numbers both ways.
• What's the breakdown of rent for each unit?
• What does "electric" cover on this property?
• Have you looked into any other low-down payment options? I don't like FHA, if it can be avoided.

As far as the analysis:

• I would definitely budget more than $2k for initial repairs. The pictures clearly show that this place needs some love. If the owner couldn't be bothered to wash off the mold and trim the bushes for the listing photos, what do you think the interior is going to look like?
• Bump up repairs and CapEx to at least 15% combined. This place is 120 years old.
• Water/sewer might be a little high. Call the local water authority.
• I'm unclear about the trash expense. Did you confirm that? The town website says "Residents and businesses in the District pay a separate fee for this service," but doesn't give a price. They do list "bulk pickup" as costing $75.
• What about heat and HW? The town property card lists the heat as "oil" and "forced air." That leads me to think that the entire building is on one heat and HW system. That could kill the whole deal. Confirm this ASAP.
• Those taxes, ouch.
• Lawn care and snow removal, are you including those under "misc?" I think it's best to break out as many of the expenses as possible.
• Owner occupied, I bet you can do quite a bit better than 4%.
• Your PMI looks really high. I have PMI on my primary, it's less than that each month and my loan amount was 3X+. It pays to shop around.