[Calc Review] Help me analyze this deal

[Chase Whitney]

View report

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

[Jaysen Medhurst]

To make this a true BRRRR deal, @Chase Whitney, you'd want to get this for ~$60k. One thing that you didn't make clear is your strategy. Are you intending to house hack? I ask because you have PMI listed for both loans...but you're putting down 20% and PMI isn't an issue for non-owner occupied properties (since you can't do a low-down payment mortgage).

As far as your analysis, most of the numbers look good. A few things to look at:

• How did you get that very specific rent price?
• Closing costs look low. This is pretty local. Talk with your lender.
• Your interest rates for non-owner occupied loans are pretty optimistic. You'll likely be in the 4s or 5s.
• You're not going to get (good) Property Management for 7%. Plan for 10-12%.
• Tenant should be responsible for lawn care at a SFR.
• You're missing Insurance.
• If you're doubling the value of the property, you should expect the taxes will go up.

My guess is that you cash flow ~$150/month for a CoC ROI of ~6%. Not good enough for me just because of the ROI. If you were able to get this at a better price and pull all (most) of your money out, then it's probably worth pursuing.