Help Analyzing a Purchase?

[Michael Hopkins]

Hi Everyone! Was hoping for some feedback on a possible purchase of a SF. Basement is unfinished (😊) So turning into a Multi Family. I've ran the numbers a few times but would love some feedback. I guess this might be a BRRRR? I've used Dealcheck and the BP calculator. I'll share some details from Delacheck below.

Listed for $349,900. Might be multiple offers so I ran the scenario at $370,000.

$1700 - 3 bedroom up - New floors, paint, knock down 1 wall, add washer dryer, modify front entrance for common foyer between units

$1400 - Basement unfinished - turn into a 2 bedroom unit, kitchen, bathroom  - 40'x20'

Widen driveway

Split hydro into two meters

Fix upper then rent (2 months) then work on lower (4 months)

Refinance after 8-12 months. Hope to recuperate rehab costs of $60,000. Using a HELOC to pay for rehab.

It will have some decent monthly cashflow, just not sure about some of the other numbers. COC & CAP rate?

Really apologize if this posts ends up messy and confusing, just looking for some insight on where I'm going wrong or where I can improve.

Thanks! :)

[Chris Baxter]

A few things to review... 

Are you truly getting 90% LTV at 3%?
If this property is Ontario, your 2% rent increase needs to be zero
Insurance seems low
You haven't allowed for maintenance, snow, landscaping, property management (even if you self manage) etc.

To get a true picture, make sure you include all expenses