Buying from other investors

[Kevin Nichols]

I am working with another investor who is getting out of the business. I've reviewed his 18 rentals and they all rent for $450 to $700.

Initially...looking at his asking prices and running through the SFR analysis, I didn't think they were so good...but I was using a 15 term with 25% downpayment.

Here's an example.

Price:  $39,000

Downpayment: $9,750 (25%)

Closing: $1,500 (Going to use a line of credit on based on stock portfolio)
Pay LOC based on 30 year term: (Prime - 0.25% = 3.00%): $127/month

Income: $6,072 (NET with 8% vacancy)

Expenses: 
Property Taxes: $1066
Property Insurance: $450
Repairs: $700
CapX: $500
Mortgage: $1548

Annual Cash Flow: $1828
COC: 16.25%

My spreadsheet:  https://www.dropbox.com/s/e51inxidg4m0um0/analysis...

How does this look?  Thoughts?

Kevin