Help with ROI analysis

[Andrew Perkins]

My wife and I have been working on our first deal and I would really appreciate some feedback on my analysis. I attempted to transfer over my spreadsheet to this post and I posted it at the bottom. Basically, I have a $45,000 HELOC and $25,000 Cash. My thinking is rather than putting the full $25,000 cash on one rental, we split the cash into a few properties and use the HELOC for the remaining 25% down on these properties. The overall return on the amount of cash invested is higher, but each property would cash flow a smaller amount. Would using the $25,000 cash and the HELOC to buy multiple properties be the smarter route? These are just sample numbers close to what we are looking for.

Thanks,

Andrew

Purchase Price $70,000

Closing Costs $3,500

Rehab Costs $20,000

All-in Price $93,500

Down Payment $6,000

HELOC $19,000

Financed Amount $68,500

Property Tax Rate 1.70%

Interest Rate (Mortgage) 5.00%

Interest Rate (HELOC) 6.50%

Expense Rate 10.00%

Insurance $100

Extra Expenses $0

Vacancy Rate 8.30%

Monthly Rent $1,150

30 Year

Monthly Annually

Rental Income $1,150 $13,800

Principal $82 $988

Interest $285 $3,425

Principal (HELOC) $63 $751

Interest (HELOC) $103 $1,235

Taxes $132 $1,590

Insurance $100 $1,200

Extra Expenses $0 $0

Expenses $115 $1,380

Vacancy $95 $1145

Total Expenses $443 $5,315

NOI. $707 $8,485

Net Income $319 $3,825

Cash Flow $174 $2,086

Cash on Cash 35%

Return on Investment 64%