Just analysed my first property - What do you think?

[Aimen Shawki]

Hey everyone, i hope I placed this in the correct subforum and I hope its not considered inappropriate for me to ask for a 2nd glance on this analysis. I just want to make sure I have my spreadsheet correctly made. I'm in CH5 of the UBG and I all the information to make this spreadsheet from there. (awesome resource so far)

So background:
This is the property https://www.redfin.com/CA/Los-Angeles/14647-Erwin-...

Assumptions:

• Buyer is asking 675k (although in mid 2014 the lot in much better shape sold for 450k, but lets ignore that) I assumed i paid asking price.
• I assumed the stated rents are correct (they seem okay judging by CL ads)
• I put 25k down finance via FHA loan
• Guessed at insurance and PMI costs, as well as maintenance, landscaping
• Assuming only utility paid by me is water + landscaping + sewage/trash

I got a cap rate similar to redfin which makes me think I did this correctly, but mine is lower mostly because I included CapEx & management costs in my expenses (assuming they did not)

But just running these numbers, this looks like a horrible investment - so am I doing this right?

Inputs

Home Parameters
Purchase Price	$675,000.00
Improvements	$0.00
Closing Costs	$20,250.00
Finance Details
Downpayment	$25,000.00
Finance Amt	$670,250.00
Intereste Rate	4.15%
Mortgage Term (Yrs)	30
Mortgage Payment	$3,258
Mortgage Cost	$1,172,919
Monthly Incomes
Unit	Type	Rent
1	1+1	$875
2	1+1	$900
3	1+1	$925
4	2+1	$1,230
Total Rental Income	$3,930
Total Extra Income	$0
Vacancy Rate	10%	-$393
Total Revenue	$3,537
Yearly Total	$42,444
Monthly Expenses
Property Taxes	3500	$292
Insurance	0.50%	$281
PMI (FHA Only)	0.50%	$281
Maintenance	Monthly	$200
Management	10.00%	$393
Landscaping	Monthly	$100
Utilities	Monthly	$100
Other	Monthly	$0
CapEx	5.00%	$196.50
Total Expenses	$1,844
Yearly Total	$22,124

Final numbers:

Metrics
-	Monthly	Yearly
Net Operating Income	$1,975	$23,695
Cap Rate	-	3.51%
Cash Flow	-$1,565	-$18,777.29
ROI	-	-75.11%
COC	-	-75.11%

Keep in mind ROI and COC are the same because I assumed an FHA loan and therefore my downpayment rolls all closing costs and other fees into the loan.

Keywords: Los Angeles, California, Rental Property, Analysis