Deal Analysis On Buy & Hold Single Family

[Chris Mackey]

I am currently analyzing a single family home as a potential buy and hold deal and am looking for further input.

Here are the important details:

Price: $160000

Local Comps: $200k-$220k

Down Payment: $32000

Closing Costs: $5000 (estimated)

Rehab Costs: $15000-$20000

Monthly Rent: $1800-$1900

Mortgage: $1254 (includes principle, interest, property tax, insurance)

Vacancy 5%: $90

Repairs 10%: %180

CapEx 5%: $90

Cash Flow: $186-$286/month

I am still new at this, but came up with a 3.9%-6.0% COC return. While not great compared to other investment vehicles the potential ARV is appealing to me.

Is there anything else I should be factoring in, and if not, your thoughts on the deal?