First time investor - Condo, Connecticut

[Michael DiDio]

Hi All,

I am currently in negotiations on an off market 1br/1ba condo unit in black rock section of Bridgeport, CT (off mkt transaction). We are getting close on a number, but will be in the range of $117.5-120k. Please let me know if I am missing any inputs to my calculation, cap rate is a bit tighter than I wanted, but cash on cash return is strong rel to other assets.

Purchase: $117.5-120k

Down payment: 10% - 12k (using 120k purchase)

Closing costs: ~4k (no agent fees)

Total Cash Invested: $124k

Assumptions- Conservative approach

-1350 rent (have a tenant ready to move in at $1400)

-$200 property taxes (# is closer to ml100s)

-$50 insurance (will be lower using assumptions based on internet, haven’t gotten full quote yet)

-$350 Other expenses ($250 for HOA - $100 for reserve)

Net cash flow: $323.37

Cash on cash: 24.25%

Cap rate: 7.26%

Thanks!

[Filipe Pereira]

Got it... 

In that case, your private lender is seemingly foolish. Private money is nearly 3X what s/he is offering you. 

I'e got to admit, and certainly not one to be be a debbie downer, but this whole thing smells really fishy. If your pvt lender really is offering rates that low, send me their info, I've got a few deals for them to fund!