Author Topic: Cash Flow ROI and Total Return Analysis Using a HELOC - Please Help  (Read 723 times)

medinaj2160

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I am not sure how to setup the Rental Return Analysis with the Calculator since I am having to pay 100% cash on this deal but using a Heloc

House 46,500 + 3% closing cost
Heloc  60,000 at 4.5%
Renovation 25,000
Rent 900/month
Vacancy 9%
Insurance 400/ year
Taxes 1700/ year
Property Management 8%
Repairs and Maintenance 400/ year

Value of the house after repair should be around 90-110k. I am trying to close on Friday I will appreciated if you guys can help me out with the Analysis

Thanks

Juan

NoNonsenseLandlord

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Re: Cash Flow ROI and Total Return Analysis Using a HELOC - Please Help
« Reply #1 on: December 23, 2016, 12:58:50 PM »
Money invested is $60K + $25K.

Rents after expenses is 10,800 - (2500+864+972) = $6,484.    Since it costs you 4.5% for the HELOC, subtract that out before you calculate a return.  Otherwise it's like this.   Your return is $6,484/$85,000 = 7.6%.

Your vacancy is rather high.  I use 5%.  Your maintenance is light, I use 10%.

In any case, it's less than 7.6%.  That is pretty low.