2018-March-Week 1 Analysis

Hello All!

Hope you've had a wonderful weekend, Apologies for the delay in this weeks analysis, as you can see we're trying a new format that allows us to give a bit more information out. In these analyses, we are focused on CASH FLOW. We are showing you a 100% financed option with 4% interest rates. All of the following numbers are used as examples and are not guaranteed in any way. You should not base your purchases around these numbers. This forum provides a view into how we analyze many deals each week, and then look further into the ones that show promise.

The obvious outlier in this scenario is 2049 Seneca Street. A monthly cashflow of over $500/mo in almost always unreasonable for these small properties, lets look at why.

Asking Price - $49,000

Units - Two, 3 bedrooms each

Gross Monthly - $1600 (Fair to slightly below average rent)

So this building needs a fairly extensive rehab. While I have not entered this property (yet), based on the pictures the siding and structure seem to be OK, but the interior needs a near complete ripout and replace. Taking an optimistic price of $30/sqft on the rehab puts this 2500 sqft home at a rehab estimate of $75,000. Paying asking price of $50,000 brings your profits down to a much more modest $165/mo.

While this doesn't quite hit the goal of $100/door we generally look for, this is one of the better BRRRR stratagy homes available in buffalo. An ARV of $140,000 means you have a bit of equity to start off with, especially if you can bring purchase or rehab costs down a bit.

I've also chosen this property to look at this week because it is in one of my favorite areas of the city. South Buffalo is rapidly changing with many large projects happening and home and rent prices on the rise. I've estimated the rent on this home at $800 per unit, and We are currently receiving $900/mo in a comparable unit just down the road.

If you have any Questions, Comments, Opinions... Please let us know! If there is something you would like to see in the future, comment or send us an email. We will be walking through 2049 Seneca street later in the week and will be sure to post on our blog so if you would like to see that, we recommend you sign up here!