Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
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,

User Stats

14
Posts
3
Votes
Venel Rene
  • Investor
  • Florida
3
Votes |
14
Posts

Would you close with these numbers?

Venel Rene
  • Investor
  • Florida
Posted

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.

Loading replies...