Analyzing First Rental Property

[Jason Martinez]

Hi everyone, 

I have been trying to analyze deals on my own and I am asking if you guys and girls can help me with my numbers. 

Purchase Price: $25,000 (without negotiating) 

Repairs: $4,000 

Closing Costs: $3,000 (this may be high, but figured it's better than undercutting it) 

Down Payment: $5,000 (20%) 

($25,000 + 4,000 + 3,000) - 5,000) = $27,000 (Loan Amount) 

Rental Income: $800/mo 

Property Tax: $31/mo, $372/ann

Insurance: $9/mo, $108/ann

Interest Rate: 4.5%

PITI: $176.80 

Vacancy: (10%) $80/mo, $960/ann

Property Management: (10%) $80/mo, $960/ann

Maintenance: $100/mo, $1200/ann 

Operating Expenses: (176.80 + 80 + 80 + 100) = $436.80/mo

Income - Expenses: $800 - 436.80 = $363.20 Cash Flow 

ROI: Annual Return/Total Invested: 4358.40/12,000 (4,000 + 3,000 + 5,000) = 36.32%

Advice and criticism is encouraged. This would be my very first investment if everything looks right. 

I did not include Capital Expenditures due to the $4,000 in Repairs. If I were to include Cap Ex. It would be 10% of Rental Income ($80) which would decrease my Cash Flow to $283.20 and it would bring my ROI down to 28.32%

[George W.]

Where in the world did you find a property so cheap that only needs 4k of repairs?