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Updated over 8 years ago on . Most recent reply

User Stats

6
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0
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Adele Hawkins
  • Real Estate Agent
  • Enterprise, AL
0
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6
Posts

1st Deal Analysis for Rental Property

Adele Hawkins
  • Real Estate Agent
  • Enterprise, AL
Posted

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!

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