Help with underwriting

[Peter Zynko]

Draft underwriting to attempt to find investor friendly coc %

give constructive criticism please 

Wholesale a Hybrid sub-to / seller financing equity contact for duplex 

entry: 50,000.          Median Rent rate: 1600/u

assignment fee: 15,000.        income: 3200/m

sell owes: 120,000.              Owe Bank: 800/m

closing: 7000.              Seller financing: 500/m

renovations: 60,000.                   cost: 1,300/m

runway: 4 months = 6,800

spread: 1900

all in cash: 138,800

Income a year: 22800/y ÷ all in cash = coc

coc: 16.43%

seller sees

offer: 250,000

sub-to 120,000

sell fin: 500 w/ 0% intrest 

term: 13.33 years

down: 50,000

[Benjamin Aaker]

That's quite a nice seller financing deal. If I read right, you are also planning on assuming the seller's mortgage. You should contact their bank and determine if they would agree to that. Sure, people will tell you that you can without talking to the bank, but they could call the loan due at any time (assuming there is a due on sale clause, and there probably is).

As a buyer, I'd want to see more on your expenses estimates. NOI of 22.8k seems optimistic, though not out in left field.