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Updated over 9 years ago on . Most recent reply

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272
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Tristan Cortez
  • Rental Property Investor
  • San Antonio, TX
50
Votes |
272
Posts

What am I doing wrong?

Tristan Cortez
  • Rental Property Investor
  • San Antonio, TX
Posted

Hi BP,

I've been analyzing deals just to get as much experience on finding a good deal. The problem is I'm putting properties into my excel spread sheet and my cap rate pro app and I can't seem to "make" any money if I purchased the property.

Bellow is my hypothetical example based on a real house I found on the MLS.

Asking price $84,000

Purchase price $84,000

Renovation $12,000

ARV =$110,000

Rent $1100

Vacancy 7% ($77)

Capex 5% ($55)

Repairs 5% ($55)

PM 10% ($110)

Insurance ($150)

garbage ($20)

Property tax ($200)

Total expenses $667

NOI= 433

Mortgage

5% interest

20% down

Over 30 years

Purchase price $84,000

Monthly payments =$ 361

=$72 cash flow witch in nowhere near my requirements of $150 cash flow for SFR

So basically I can't "make" any money on a $84,000 house. What am I doing wrong?

My I over estimating/underestimating?

All answers are greatly appreciated.

ALL answers are graciously accepted. Thanks

Most Popular Reply

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4,079
Posts
1,596
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George P.
  • Property Manager
  • Livonia, MI
1,596
Votes |
4,079
Posts
George P.
  • Property Manager
  • Livonia, MI
Replied

u should self manage.  also,  don't pay garbage and water!  why would you? insurance is high.  should be below 70 per month. 

those are good numbers,  I'd buy it around 75 any day 

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