How do you underwrite your your deals

[Jaylen Crawford]

How do you underwrite your deals? When ever I analyze properties that cost more than 80-100k they don’t seem to cash flow and if they do not well.

Example Property: 6804 W 15th St, Indianapolis, IN 46214

3 bed 2 bath 1554 sqft

I underwrote this deal as

Purchase price: 125,000

Down payment: 25,000 or 20%

Closing cost: 3,750

Total cash needed: 28,750

Monthly

Rent: 1218

Property taxes: 208.33

Insurance: 50

Property management: 121.80

Maintenance/Capx: 182.70

Loan payment: 477

Cash flow: 68

Cash on cash 2.8%

I didn’t even factor in repair cost which would make the cash on cash return even lower. I also don’t know how much the insurance would actually cost. I increased it slightly based off the information provided by Zillow.

How would you analyze this property? Also do you find it hard to get properties over 100k to cash flow?