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Updated over 9 years ago on . Most recent reply
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What am I doing wrong?
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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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