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Updated over 8 years ago,
1st Deal Analysis for Rental Property
Woke up this morning and tried my hand at my first Deal Analysis.
First and foremost can someone look this over? Is there anything else I need to consider?
Property 2/2.5 1,375 sq ft Townhome. Asking price $64,900.
1.
Gross Rent = 8832
I went with $800 per month even though similar homes go for $750 this home has had upgrades to include wood floors and new carpet.
I used a 8% VAC.
2.
NOI = $6,592
Property tax $200
Insurance $300 (This is not an exact quote but from reading expecting $200 - $300 -- Trying to stay conservative)
HOA $540 (Although there was no HOA actually listed I went with similar neighborhoods HOA fees.)
Maintenace $1,200 (The home looks updated so wasn't really sure how to estimate this.)
3.
CAP = .10
4.
Cash Flow = $3,773.32
This is based on a $51,920 @ 30 years @ 3.56%
5.
Cash on Hand Return
29%
If these numbers are a good indication of what to expect how do I do that thing where I get in with no money down? Just checking.
Feedback/guidance/things to consider welcomed.
Thanks BiggerPockets community!