Updated about 9 years ago on . Most recent reply
First Property Analysis
I'm close to buying my first rental property but am afraid to take the leap.
The house I'm considering is a foreclosure but in decent shape. It will only need paint and a minor kitchen remodel.
Asking price = $54,900 Tax Value is $87,100.
Am thinking I can get rent of 600-650 (3bd 1 ba.) dead end st.
will be putting 20% down.
5 min. drive from my primary residence.
all of the numbers work out and I could handle the payment in case of vacancy but I'm worried of permanent vacancy or everything breaking as soon as I buy it and I do not want a constant headache and money vacuum.
Thoughts/Help??
| Financial Indicators | |
| Debt Coverage Ratio | 1.97 |
| Annual Gross Rents Multiplier | 7.04 |
| ROI w/tax & appreciation | 37.53% |
| ROI w/cashflow & principal | 24.49% |
| Cap Rate | 9.59% |
| Cash-on-Cash Retrun | 19.23% |
| Cost per Sq.Ft. | $53.20 |