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Updated over 7 years ago,
Is this a good deal?
Hi! I've been studying on BP for awhile now, and I have my eyes set on a 4br 2ba 2000sqft SFH in northeast MS (close to where I live). Here are the ideal numbers/worst case scenario.
List price: 45000
Buy: 40000/45000
DP:1400/1575
Rehab: 2500/5000
After repair Value: 50000
Purchase cost: Inspection-280. Appraisal-300. Closing cost-3% total loan T=1780
Gross rent:1200/800/m
Expense: Tax-1462/y. Property Management-10%. Maintenance-10%. Cap Ex-10%. Vacancy-10%. T=470/354
Cash: 5680/8505
NOI: 610/366
Mortgage: 207/233
Cash flow:403/133
Cap rate:18.3%/9.8
CoC: 85.1%/18.7%
ROI: 195%/3.1%
Any corrections in my math would be highly appreciated or some tips from anyone with experience in this area. Is there anything I'm missing? Would you be confident buying this home?