Groton, CT Househack Analysis

[Max Collins]

Hi all, this is my first post after lurking for a bit. Currently I'm active duty military looking to use a VA loan for a househack in the New London County/ SE Connecticut region. I've let a few potential buys slip by already in this market but another mls property is on my mind. I've done a showing today, just walking through with my agent and taking some pictures of any details that stood out. Here's the run down of my numbers for the property fully rented out with my very rough estimate of repairs and expenses to try and come up with a good offer for house which has been on the market for longer than normal. The house is listed for 250k and fully rented for 1100 month-to-month.

The rough estimates I'm using are:

5k paint (2% home value), 3k misc exterior, 4k misc interior

Thank you for your time!

P.S. I do intend to occupy the lesser unit but long term plan is to move out and hold the property, hence accounting for 2 units occupied.

PRICE	$190,000.00
UNITS	2
RENT CHARGED	1100
VACANCY RATE	8.00%
DOWN PAYMENT	$0.00
IMPROVEMENTS	$12,000.00
CLOSING COSTS(%)	2.00%
INTEREST RATE	2.375%
MORTGAGE TERM	30
ROOF COST	14000
HVAC COST	10000
APPLIANCES COST	10000
TAXES	$3,000.00
INSURANCE	$1,000.00
MAINTENANCE (%)	2.00%
UTILITIES	$125.00
PROPERTY MANAGER (%)	0.00%
OUTPUTS
GROSS INCOME	$26,400.00
ANNUAL INCOME	$24,288.00
CASH OUTLAY	$15,800.00
MORTGAGE	-$738.44
DEBT SERVICE(ANNUAL)	$8,861.28
TAXES(MONTHLY)	$250.00
INSURANCE(MONTHLY)	$83.33
PITI(MONTHLY)	$1,071.77
UPKEEP(MONTHLY)	$327.08
CAPEX(MONTHLY)	$177.78
PROPERTY MGMT. (MONTHLY)	$0.00
EXPENSES(MONTHLY)	$504.86
EXPENSES(ANNUAL)	$6,058.33
TOTAL EXPENSES(MONTHLY)	$1,576.63
TOTAL EXPENSES(ANNUAL)	$18,919.61
NOI	$18,229.67
CASH FLOW(MONTHLY)	$447.37
CASH FLOW(ANNUAL)	$5,368.39
CAP RATE	9.59%
ROI	2.83%
CASH ON CASH RETURN	33.98%
1st YR EQUITY	$4,396.43