Hey gang - would like any insights on this rental property:
Purchase Price: $130,000; 3/2 SFH (mountain town); 1920s brick construction; "B-" neighborhood.
Down: $26,000
Closing costs: $3,000
Interest rate 5%/30-years
Monthly Rent: $1,200
- Vacancy: $60 (5%)
- Mgmt: $120
- Taxes: $105 (1%)
- Ins: $100 (ballparking this cost)
- Repairs: $60 (5%)
- Utilities: $50 (ballparking this cost)
- CapEx: $60 (5%)
Cash Flow from Ops = $645
- Mortgage: $560
Monthly cash flow = $85
This is a "retail" deal and most likely a pass. Still, I'd like some opinions! Am I too low on vacancy and CapEx? Too high on insurance? Seems like it evens out and it still doesn't cash flow very well.
Am I doing something wrong or is this just the wrong property?