Hey Guys,
My wife and I are getting closer to the point where we're willing to go look at properties with the intent of buying. I'd like to throw out one of the analyses I did on a property to see if there are any holes in my logic. Feedback is appreciated!
Property Details:
3 bedroom, 2 bathroom, 2 car garage. Inside is a bit dated and the garage is in rough shape, but overall it looks like a pretty solid property from pictures (obviously I would want to see it).
List Price: $60k
Desired Price: $50k
Closing Costs: $2k (Is this even close? I honestly have no idea how much of the price the buyer pays in closing typically)
Estimated Needed Repairs: $2.5k (Total shot in the dark until I see it)
Cash all-in: $14.5k (20% down + closing + repairs)
Category | Income/(Expense) Monthly |
Rent | $950 - based on around 50 properties I've seen actually rented in the area. |
Mortgage | ($227) - 5.5% with 20% down |
Taxes | ($100) |
Insurance | ($75) |
Vacancy | ($79.17) |
Repairs (10%)/CapEx (5%) | ($142.50) |
Property Management | ($95) |
Total CASHFLOW | $231.33 |
Cash-on-cash return: 19.14%
Cap Rate: 10.09%
Overall, this seems like it's worth more investigation. Thoughts?