Hi everyone. Found a property that I may pursue. I have my own sense of the #s but thought it would be fun to hash it out here. Opinions/thoughts appreciated.
Purchase price: $145k (listed at $150k)
It's an assumable mortgage with ~$132k left on the mortgage. That leaves $13k as the "down payment" for the equity the seller has.
Doesn't need much in repairs. Some siding, new paint, and weatherproofing doors/windows. Estimating $5k? Plus closing costs of $2k.
All in, will be about $20k. I'm an agent so I'll get about $3k back as a commission. So $17k will be in the property.
It's 4 bedrooms, 3 baths. Rent = $1775 ($21,300 yearly). I could likely get more by offering it as a shorter term rental. It is in a student area and I know a lot of international students have trouble finding housing if they're only here for a semester. It's on the school busline and walking distance to Food Lion, restaurants, Dollar Store, etc.
Mortgage = ~$9600
Taxes = $1800
Insurance = $900
HOA = $1650
Repairs/Maintenance = $2000
Vacancy = $500 (I own 2 other similar units, almost have to have a waiting list)
Total Expenses (annual) = $16,450
Cash flow = $4,850
Cash on cash = 28%