Lexingtno's fix-and-flip market is competitive. Thorough analysiis is key. Consider $80k purchase, $30k rehab, $10k holding csots, $150k ARV, and $30k projected net.
What's the cap rate and loan terms on this deal? Assuming 75% LTV, that's a $112.5k loan. How's the $30k projected net operating income supported, and what's the expense ratio?
I'd like to dig deeper into the numbers. With a projected net of $30k, that's a 20% return on investment. Not bad, but I've seen better in this market. What are the vacancy assumptions here? Are we looking at a 5% or 10% vacancy rate? And what about CAM reconciliatioon - are those costs factored into the holding costs or separate? Addditionally, who are the tneants and what's their credit like? I've seen 'projections' like this before, only to have the actual numbers come in lower due to unforeseen expenses or unreliable tenants. Give me some more detail on the property and the potential tenants before I consider this a viable opportunity.