practice analyzing deal # 6

[Dieudonne T.]

	1% rule =	desired rent
89,900	0.01	899
	Des Moines, IA 50316
price	89,900
closing co	2500
monhrent	1,200.00
repairs	5000
total cost	98600
Loans
price	89,900	Down % |
downpay	3146.5	3.50%	FHA
total loan	86,754
Money Needed =		$11,630
MONTHLY ESPENSES
PAYMENT	$395
tax	$130	M insure	H insure
insurance	$110	79	31
vacancy	60	5%
repairs	84	7%
management	120	10%
cap	84	7.00%
utilities	0	0.00%
TOTAL	$983
EVALUATION
MONTHLY INCOME =		217.00
YEARLY CASH FLOW=		2604
CASH ON CASH =		22%	8%+ = good		15%+ = amazing
price for good cash on cash =	already good
for amazing cash on cash=	already amazing
if repairs exceed $30000 cash on cash less than good unless price drops

[Carl Millsap]

@Dieudonne T Nsabishaka the numbers look good, but I would encourage you to look at small multifamily. It may cost you a little more to get into it, but you increase your return and spread your risk out over 2-4 tenants instead of 1.

If you have a single family and that tenant doesn't pay rent you have to cover the expenses of the property. If you have a duplex or a four plex when the other tenants pay you reduce the amount you have to pay out with a duplex, and with a four plex you may not have to pay anything personally. 

I looked on realtor for the Des Moines market and found several pending for less than $200k. I even found a multifamily for $99k which is $10k more than what you're doing your practice on. 

Pictures didn't show much but if you could buy it for the same $89k you're practicing on you're ahead of the game.

https://www.realtor.com/reales...