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Updated almost 5 years ago on . Most recent reply
House Fishing [Minneapolis Househack Deal Analysis]
| PROPERTY INFO | |
| Property Address | 1123 25th Ave N, MPLS 55411 |
| MLS# | 5609309 |
| Number of Units (Duplex, Triplex, 4plex) | 2 |
| Crime Rating (Low/Medium/High) | Medium |
| Property Listing Price | $ 210,000.00 |
| Rehab Needed? (None/Light/Medium/Heavy/Full) | Medium |
| Square Footage | 1,492 |
| Rehab Price/Square Foot (Refer to Key on Right) | $ 25.00 |
| Total Rehab Estimate | $ 37,300.00 |
| Total Cost (Purchase + Rehab) | $ 247,300.00 |
| MINIMUM Down Payment Required for Purchase | $ 8,655.50 |
| Conventional Loan Amount (Total - Down payment) | $ 238,644.50 |
| FULL OCCUPANCY CASH FLOW | |
| Est. Monthly Rent (using www.myrentrates.com) | $ 2,800.00 |
| 1% Rule (Rent should be 1% of Purchase + Rehab) | $ 2,473.00 |
| Does this PASS the 1% Rule? | YES |
| Est. Monthly Payment (PITI + PMI) - Mortg. Calculator | $ 1,641.70 |
| Est. Monthly OpEx (PITI + PMI + Utilities + Reserves) | $ 2,598.70 |
| Est. Monthly Cash flow (Rent - OpEx) | $ 201.30 |
| CoCRoI | 27.9% |
| HOUSEHACKING CASH FLOW | |
| Est. Monthly Rents | $ 2,100.00 |
| 1% Rule | $ 2,473.00 |
| Does this PASS the 1% Rule? | NO |
| Est. Monthly Payment | $ 1,641.70 |
| Est. Monthly OpEx | $ 2,598.70 |
| Est. Monthly Cash flow | $ (358.70) |
| CoCRoI | -49.7% |
ASSUMPTIONS
| Utilities (Varies by Property) | ||
| Electricity | ||
| Water & Sewer | 225.00 | |
| Garbage | 60.00 | |
| Shoveling/Lawn Care | 140 | |
| Total | $ 425.00 | |
| Reserves | ||
| Vacancy (%) | 5.00% | $ 140.00 |
| Repairs & Maintenance (%) | 7.00% | $ 196.00 |
| CapEx (%) | 7.00% | $ 196.00 |
| Management Fees (%) | $ - | |
| Total | $ 532.00 |
Successful househackers - would love to get your feedback.
Most Popular Reply
#5 All Forums Contributor
- Real Estate Broker
- Minneapolis, MN
- 5,762
- Votes |
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#5 All Forums Contributor
- Real Estate Broker
- Minneapolis, MN
@AJ Smith in a nut-shell I think your bananas to even consider this property anywhere near the numbers your talking.
I need to preface this with the 411 that I did a LOT of deals in this area, for years.
The area, tenant class, neighborhood class, none of it supports the kind of leverage your looking to do on this thing.
Not long ago we were able to pick these up fo $50K all day long, and many passed at that time. It made sense on rents, but you needed a good team ready to manage these properties, tenants in this kind of area. Then as things went on and moved up people were players at $75k, then $100k, even $125k I can understand but $200k+ is complete insanity, total complete insanity.
Do your homework on the area, there is 0% chance I would ever consider $100k per door in the area, even $75k would be a hard sell.
There is a very long list of better places and ways to deploy $250k acquisition than on this lead balloon.
- James Hamling
