Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated about 3 years ago,
Would you close with these numbers?
This is a 5/4 single family 2 floor home in the Kissimmee area that was perviously used as a short term investment home. Seller agreed to transfer/hand over all pre-existing bookings for the property. The house doesn't appear to need much work, beside minor cosmetics so the repair budget is low. Would you close on this, based off these numbers?
Property Information:
Purchase Price: $390,000.00
Estimated Repair Costs: $6,500.00
Down Payment: $39,000.00
Amortized Over: 30 years
Loan Interest Rate: 3.200%
Monthly P&I: $1,517.96
Income:
Estimated monthly income $5,200.00
Monthly Expenses:
electricity $300.00
water & sewer $70.00
hoa fees $65.00
pool $95.00
Vacancy $520.00
Maintenance $260.00
Cap. Ex. $260.00
Management $520.00
Insurance $111.00
Property Taxes $354.00
Mortgage Payment $1,517.96
Total $4,072.96
Monthly Cash Flow: $1,127.04
Cash on Cash ROI: 24.18%
Financial Projections:
Total Initial Equity: -$ 351,000.00
Gross Rent Multiplier: 6.25
Income-Expense Ratio (2% Rule): 1.28%
Typical Cap Rate: 8.14%
Debt Coverage Ratio: 1.74
ARV based on Cap Rate: $ 390,000.00
50% Rule Cash Flow Estimates:
Total Monthly Income: $ 5,200.00
x50% for Expenses: $ 2,600.00
Monthly Payment/Interest Payment: $ 1,517.96
Total Monthly Cash Flow using 50% Rule: $ 1,082.04
This feels like a good deal based off the number, but It also put me on top of my budget.