First Time Property Analysis

[Aaron Krawitz]

I have yet to take steps on investing as I'm taking the next 6-12mo to read and absorb as much information as I can. That said, I'm running my own numbers on cash-on-cash ROI and I wanted to make sure I'm looking at these correctly. Please let me know if I'm not including any expenses or missing something key.

Property Details:

- 3 / 2, 1374 sqft, $89k asking

Expenses ($802)

P&I: $369

Tax: $188

Insurance: $70

Utilities: $50

Vacancy: 5% ($62.50)

CapEx: 5% ($62.50)

Total Investment (Down Payment + Closing + Repair) = $25,499

Rent = $1250

Cash Flow = $448

Cash On Cash ROI = 21.08%

This is a single family home in an area where I've competitively estimated the rent (Most units running between $1150 and $1450). I'm having the hardest time determining estimated utility costs. However even if I increase utilities, vacancy, capex by 5% all around, I'm still near $300/mo. As a side note, I would be managing this property myself and not running it through a PM.