Buy&Hold - Would you consider this as a good deal?

[Fabio Busatto]

Would you consider it as a good deal? If so, why?

Purchase Price $ 130.000

Improvements $ 5.000

Closing Costs $ 3.900

Total Cost $ 138.900

Downpayment20%

Finance Amt $ 104.000

Downpayment Amt $ 26.000

Interest Rate2,00%

Mortgage (yrs)25

Mortgage Payment $ 441

Loan fees $ 2.000

Cash Outlay $ 36.900

# of Units1

Total Rent/Month $ 1.400

Other Rev/Month $ -

Tenant Duration (months)0

Gross Rev/Month $ 1.400

Gross Rev/Year $ 16.800

Goss Cost/Month $ 618,75 

Vacancy Rate4,0%

Tax rate: 21%

Key Values

Cost/Unit $ 138.900

Capitalization Rate6,27%

GRM 8,27

Cash ROI9,25%

Total ROI18,03%

DSCR1,65

Annual Cash Flow $ 3.413

After repair value: 160.000

[Jason D.]

I would not consider this a good deal for me. Too much cash outlay, not high enough return on that cash. And did I read right that you have interest rate at 2%? Is that correct? Deals are good or bad based on your goals so while it's not a good deal for me, it could work for you.