Is This A Good Deal?

[John Gardner]

Hey Guys, needed a little help analyzing a deal. 

Property Price $99,000

Rental Income - $900

Insurance - $35 

Prop MGMT $72

Taxes - $34

Mortgage - $429

Vacancy / Cap EX - $75

Down Payment $19,998

Closing $3000

Total Investment $22,998

Thanks Guys!

[Jamarr Hill]

How old is the house and how sure are you of these numbers?  I'm looking at Cap Ex and unless the home has been recently updated or is newer, I can't see it being that low.

Plus, is this property in Las Vegas or are you looking to get a home somewhere else?  I see property mgmt is low-ish and if you are local, you may find this being a great time to analyze what the property mgmt. company can do.  They can make or break your deals, they can also determine the vacancy rates.

I think it's also helpful to determine the desirability of this property you are considering.  Will it attract low income and common rent skippers or is it desirable enough to attract true competition and allow for those with a better track record to feel compelled to apply?

Other than those questions and suggestions, sounds ok to me.