Cash for analysis for rental property

[Hector Perez]

Hello BP

Got this property under contract in Houston. The property is located in a nice area in the Northwest. I originally thought that it was a nice investment property for a Buy and Hold Investor but when I sent it to my list of buyer and then post it on BP, and craiglist as my last alternative, I didnt get any replies.

Could you provide some feedback? This will make me a better wholesaler and bring great deals instead of crappy ones.

ARV=$115K

Sale Price= $101K

less My wholesale fee = $3,000

Equal = Contract price = $98,000

Mortgage amount from seller = $95,000

Estimated Monthly rental rate = $1,300

Estimated Expenses (taxes, insurance, maintenance, advertising, management fee, and HOA) = $490

6 year old roof, house built in 1995, 1489 sqft

I appreciate your feedback.

Sorry for the Title of the post. it was supposed to be " Cash Flow analysis for a rental property"

[David J.]

You can buy deals like these and better ones all over the MLS in Houston. You are not really adding value here. Under a 1.3 is a sucker buy especially from a wholesaler. Look at the two or three big wholesaling shops in the area and you will see that they are pushing this level of deal. In addition, wholesalers want buyers to pay all the closing costs and close fast. So once you add the closing costs that MLS sellers usually pay the 1.3 turns into a 1.2. At the end of the day, if you have a good deal you will have no problem selling it.