Running the Numbers

[Xiomara Davila]

Hi y’all!! Newbie investor here 😬 I want to make sure I’m running my numbers correctly.

Hypothetical case:

Listing Price: $74,900

Down Payment: 25%= $18,975

Rent: $1400/month

Monthly Expenses: $700/month

So my ROI is:

cash flow = 1400-700= 700x12(for the year)= 8400

Investment= 18975

8400 divided by 18975 = .442 x 100 = 44.2%

Am I getting this correct? In a perfect world.. this would be a great investment right? Thank you in advance!!

[Kenneth Garrett]

@Xiomara Davila

I’m assuming expenses include mortgage, taxes, insurance, vacancy, maintenance, capex, etc.  There is no rehab to be conducted?  A mortgage of around 50K is difficult to get for many lenders.