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Updated almost 2 years ago,
First Deal - Highest CoC ROI possible
Fellow Real Estate Investors,
Down here I want to layout my first deal. This deal takes place in Spain (However, I am not able to select that location). I am originally from the Netherlands. I started my Real Estate investing journey 8 months ago and I have obtained 4 properties by now. Of the 4, I want to discuss the numbers of my first deal here. I am trying to become specialized in achieving the highest possible CoC-Return. All suggestions, ideas and comments are very welcome:
Property Information - Financially | |
Purchase Price | €93.000 |
Purchase Closing Costs | €13.950 |
Estimated Repair Costs | €35.000 |
Pre-Rent Colding Costs | €1.280 |
Total Costs of Project | €143.230 |
After Repair Value | € 150.000 |
Down Payment (Own Cash) | €87.830 |
Loan Amount | €55.400 |
Loan Fees | €1.200 |
Loan Interest Rate | 4,04% |
Period Loan | 180 months |
Property Information - Financially | |||
MONTHLY INCOME | €2.400 | TOTAL CASH NEEDED | €87.830 |
MONTHLY EXPENSES | €1.346,65 | COC ROI | 14,39% |
MONTHY CASH FLOW | €1.053,35 | TOTAL ROI | 30,61% |
The following categories have been included in the section "Monthly Expenses": Vacancy 5%, Taxes, Repairs 10%, CapEx, Internet, Insurance, Property Taxes, mortgage and interest. I even have a double financing on this property, otherwise my net CF per month would have been significant higher. Management fee is excluded, as I do management and tenant searching/screening myself.
I have been studying for over a year, got all books of the BP community and listened to all the podcasts I could find.
However, this is my first post as part of the BP community.
Wishing you all the best and fortune!
PS: I want to start doing private deals with these kinds of CoC-ROI deals, any tips? ;)