All Forum Posts by: Terri Never

@Terri Never I am really busy and only gave it a cursory glance. It appears to be a good opportunity but I think the numbers may be generous. You calculate 2% for vacancy, capex, and repairs which seems awfully lose unless the home is like new. I think the numbers based on the 50% rule are more accurate but I don't know the house or market as well as you.

Good luck!

Hi Terri - by the numbers it looks like a good opportunity. Looks like you are approaching this as a BRRRR? A couple questions on the assumptions.

1) How confident are you in the estimated rental amount? I don't pretend to know that market at all, but a quick browse of online rental sites don't show 2/1 duplex units renting at $750/ea. You no doubt know this market better, but that's a big assumption to triple check. 

2) The budget for ongoing repairs and maintenance may be a little low for a house built in 1903...you never know what comes up...

3) May want to take another look at the pricing assumptions. the ARV is the sum of repairs and closing costs. I'd suggest revisiting the comps for ARV as hopefully the repairs would add more value than just their cost...either that or the purchase price should be much lower.

Hope this helps!