Good deal or bad deal

Rehabbing, Fix and Flip, Rental Properties
1

Need you guys opinion.

Is this a good deal or not?

Fully rented 2 family leases til december.
Current rents- $950 and $950
Taxes $3600 yr
Utilites (landlord) 600 yr
Mortgage 159k 5.25%
TLC 7k over 5 year period

Alright let me know what all think

2

Here’s how I see this deal:

Gross Rents: $1,900
Operating Expenses: $950
NOI: $950

Mortgage (30 yr, $159K, 7%, NOO): $1,058

Monthly Cash flow: $108 LOSS (OUCH!)

This is NOT a good deal.

Mike

3

Thanks PM,

So basically in order to make this deal any good I’d have to get the price down to 140k or get an interest rate of > 5.5%?