Should I move ahead with my first deal?

[Adam Egloff]

Hello,

I'm currently working on getting my first property and I just wanted to get some opinions on whether or not this is a good deal. It looks to me like it is even if the cash flow is a little lower than I was hoping but the cash on cash return looks pretty solid. Any thoughts are appreciated! Thanks

Property Information

Cost Information

Property Name

C Class

Building Cost

$ 34,311

Location

Birminham , AL

Land Cost

$ -

Type of Property

SFH

Cost Basis

$ 34,311

Size of Property

3,000 Sq Feet

Less Mortgages

$ 25,733

Year Built

Equals Initial Investment

$ 8,578

Amortization Period

30

Ratio Information

Loan to Value

75%

Mortgage Information

Cashflow / Initial Investment

18%

Balance

Payment

Interest

Loan Term

Amtz Period

Cashflow / Assets

5%

1st Mtg

$ 25,733

$ (138)

5%

30

360

CAP Rate

9%

Description(All Figures are Annual)

Annual Amount

Notes

POTENTIAL RENTAL INCOME

$ 7,800

Total Potential Income if rented 100%

Less: Vacancy

$ (624)

Assumed 8% Vacancy Factor

EFFECTIVE RENTAL INCOME

$ 7,176

Plus: Other Income

$ -

Other Fees, charges, etc

GROSS OPERATING INCOME

$ 7,176

Total Revenue

OPERATING EXPENSES

Real Estate Taxes

$ 535

Property Taxes

Personal Property Taxes

$ -

Property Insurance

$ 1,442

Off Site Management

$ 780

Payroll

$ -

Expenses/Benefits

$ -

Taxes/Worker's Compensation

$ -

Repairs and Maintenance

$ 624

Utilities

$ -

Accounting and Legal

$ -

Licenses/Permits

$ -

Advertising

$ -

Supplies

$ -

Lawn and Grounds Keeping

$ 200

Miscellaneous

$ 390

TOTAL OPERATING EXPENSES

$ 3,971

Sum of Line 6 thru 23

NET OPERATING INCOME

$ 3,205

Less: Annual Debt Service

$ (1,658)

Total Mortgage Payments

CASH FLOW BEFORE TAXES

$ 1,547

Add Back: Principal Payments

$ 371

Principal Paid on Loan

- Depreciation

$ (1,144)

Tax Depreciation on Building

TAXABLE NET INCOME (LOSS)

$ 775