If rented @ $3200/mo, monthly cash flow after PITI + HOA, before expenses: ~$900/mo. Annual $10,800
Expenses:
--Vacancy - I have no idea how to estimate this as the property's never been rented before. It's in a good location close to commuter rail, on the best street in the neighborhood. I'd expect pretty high demand. Carrying costs ~$2300/mo. Should I assume 1 mo vacancy/yr?
--Turnover costs (cleaning, fresh paint, minor repairs) - $1000/yr.
--New roof - $10,000 (?) ttl cost divided by 3, every 15 years. Annualized to:$222/yr
--Exterior paint job - $10,000 (?) ttl cost divided by 3, every 10 years. Annualized to $333/yr
--Retaining wall repair - needed at some point, est. $1000 divided by 3, every 20 yrs? Annualized to $20/yr
--Appliance replacement (fridge, w/d, dw, stove, microwave, water heater, furnace) - $3500 every 10 yrs or $350/yr?
Did I miss anything? I've never done the LL thing before so that was a shot in the dark!
The above adds up to $4225, netting annual free cash flow of $6575. Wow - is that possible??