[Calc Review] Help me analyze this deal

[Han Kim]

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

Here is a property (SFH, 3 bed 2 bath) I am interested in the Cleveland, OH area (Euclid, to be precise). I'm thinking about a buy-and-hold strategy with some forced appreciation.

I took most of the numbers from Zillow and made them slightly more conservative.

Would appreciate your thoughts on assumptions used for this model.

I am interested in a deal that gives me solid cash flow (not expecting a blockbuster natural appreciation in the market). I'm wondering if it makes sense to purchase this property for that purpose.

I am also looking to connect with experts in the area.

Thanks,

Han

[Rachel Sharp]

Your property analysis looks ok, a few things to note: 

1) If you intend to update this property rental could be increased to $1180

2) the buyer is responsible for the POS repairs and you should be aware they are significant for this property. You will be required to have the following corrected: these are the more expensive items on the list. They need to be repaired and corrected within 90 days after the sale and the inspector is to come back out to re-inspect. (You will need to sign a city document stating you the buyer will take all POS responsibility) Often times if it is exterior work the timeline can get pushed off until the weather is permitted.

1755.19(a)(3) Repair/replace shifting, bowed deteriorating foundation walls. All foundation walls shall be maintained plumb andfree from open cracks and breaks. (A PERMIT IS REQUIRED FROM THE CITY OF EUCLID BUILDING DEPT)Damage foundation walls provide engineer report to the inspector before any work done on walls

1755.24(b)(2) Replace all broken or lifted sections of concrete on the entire property including the drive, garage pad, sidewalk, patios, and apron. NOTE: A driveway drain may be required if one does not exist. Please consult the Building Department at(216)289-8100 (PERMIT REQUIRED FROM THE CITY OF EUCLID BUILDING DEPARTMENT.)Needs permit

1755.21(a)(3) Repair/replace all broken, missing, damaged siding/trim/shutters on dwelling/garage. All replacements must match and conform to the same design and color. (A PERMIT MAY BE REQUIRED FROM THE CITY OF EUCLID BUILDINGDEPT.)