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Updated over 6 years ago,

User Stats

116
Posts
29
Votes
Franky Juwana
  • NY
29
Votes |
116
Posts

Buy and hold Rental SFR numbers

Franky Juwana
  • NY
Posted

I'm in Dilemma in figuring out the number on couple properties that I about to submit an offer. 

Prop1: 

Asking price 170k

I'm submitting offer for 160k

Dp : 25%

tax  4688/year

HOA 350/annually

Ins 80/month

flood ins: 40/month

Rental is $1495/month,  it can go up max 10% in 3 yrs lease, so i'm thinking to have 1545/month cuz the lease is due in Feb 2019. 

Tenant will take care all the maintenance (Mowing lawn), Landlord is only responsible for Tax and insurance

But when I add Vacancy, Repair & maintenance, cap-ex, and management fees,  never in my life I see cash flow positive, even when the rent is 1% or 1.5% from the asking price. 

I'm not sure if I could have positive cash flow without putting huge down, even then my cash on cash will be very low. 

Prop 2

asking price $211.500

thinkin to submit offer 200k

the amount of fixing isnt that much, just paint and cosmetic ($5000)

Dp : 25%

tax 5668/year

HOA 250/annually

Ins 80/month

flood ins: 40/month

Rental is approx $1750/month, 

I put 5% on Vacancy, Cap Ex, repair and 7% for prop mangmt

Which came out negative for cash flow and cash on cash

So, do I have to low ball every offer, which I've done, but because it is competitive market, of course some of the seller didnt even bother to counter. 

This is out of state investment , because at my backyard the price is double and some triple, it just doesnt make any sense. 

Any advice, from y'all experience investor would be appreciated, just to make sure I didnt miss anything. 

Thank you

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