Updated almost 12 years ago on . Most recent reply
PLEASE HELP!! My first deal and would Like any input I can get
Hi every one this is my first post and my VERY FIRST DEAL. I am looking to by a 3bdr 2 bath SFH. I have lived in the neighbor hood for most of my life and feel great about location but I wanted to see what everyone thought of my numbers. I believe all the math has been done correctly but would love any input you have. the cap and cash looks to be low but I should be able to sell the house for 145,000 no problem after renovations. (right now planning on buy and hold though) Also a block away is a condo complex renting 2 bedroom one baths for 1000 plus 275 a month for HOA. So I dont see a problem with rent prices. Please let me know what you think.
Here are the Numbers:
(pro forma, but I live three blocks away and have done so for 15 years)
Price: $110,000
10% down Plus closing 16,000
interest rate: 5.25 (30 year fixed)
roughly 15,000 improvements out of pocket.
Mortgage: 571.53
Rent: 1050 (this is low as market in the area is 1150)
6% vacancy ( average for the neighbor hood is 4)
Expenses:
total: 2200 annual
My results:
$134,500.00 total cost of unit
6.42 cap rate
9.127 GRM
11.10% Cash ROI
33.82% Total ROI
125.89% DSCR
$1,775.63 annual cash flow 1st yr 1775