Looking for guidance on property lived in first then renting

[Jarod Castaneda]

Looking for help in evaluating a home I purchased and lived in for 2 years.  In the military at the time and moved.  Decided to rent.  Now having joined Bigger Pockets I want to see if what I have is a good deal and not sure how to figure out.  Please let me know how to do this.

[Guifre Mora]

Originally posted by @Jarod Castaneda:

@Guifre Mora

Rental Property Cash Flow Analysis

 

Monthly Operating Income	Scenario A
Number of Units	1
Average Monthly Rent per Unit	1,575.00
Total Rental Income	1,575.00
% Vacancy and Credit Losses	5.00%
Total Vacancy Loss	78.75
Other Monthly Income (laundry, vending, parking, etc.)	-
Gross Monthly Operating Income	1,496.25
Monthly Operating Expenses
Property Management Fees
Repairs and Maintenance	110.00
Real Estate Taxes	333.00
Rental Property Insurance	51.33
Homeowners/Property Association Fees	10.00
Replacement Reserve	110.00
Utilities	-
- Water and Sewer
- Gas and Electricity
- Garbage
- Cable, Phone, Internet
Pest Control	75.00
Accounting and Legal
Advertising
Monthly Operating Expenses	689.33
Net Operating Income (NOI)
Total Annual Operating Income	17,955.00
Total Annual Operating Expense	8,272.00
Annual Net Operating Income	9,683.00
Capitalization Rate and Valuation
Desired Capitalization Rate	10.00%
Property Valuation (Offer Price)	150,000.00
Actual Purchase Price	154,000.00
Actual Capitalization Rate	6.29%
Loan Information
Down Payment	-
Loan Amount	150,000.00
Acquisition Costs and Loan Fees	4,000.00
Length of Mortgage (years)	30
Annual Interest Rate	3.250%
Initial Investment	4,000.00
Monthly Mortgage Payment (PI)	652.81
Annual Interest	4,830.53
Annual Principal	3,003.19
Total Annual Debt Service	7,833.71
Cash Flow and ROI
Total Monthly Cash Flow (before taxes)	154.11
Total Annual Cash Flow (before taxes)	1,849.29
Cash on Cash Return (ROI)	46.23%

 So no money down and the tenants are paying for you. That's free money.