Help with calculating CoCR example

[Chris K.]

Hello,

I have been calculating cash on cash roi for an investment property that I have been looking at but I need some help with double checking I am doing it correctly.

Purchase price: 300,000

Down payment 20% : $60,000

Mortgage amount : $240,000 (30 years 3.4% interest)

Property taxes $190 monthly

Insurance : $50 monthly

Repairs and maintenance: $54 monthly

Capex: $54 monthly

Vacancy : 10% (just to be safe)

HOA: $12 monthly

Expenses total with Mortage should be $1,603

If I can rent this out for $1800 monthly that leaves almost $200 monthly positive cash flow.

But I am getting coc roi of around 3.63%

Does this mean this is not a good investment for me ? Even though I am cash flow positive is it bad roi Bc of the large about (60k) I have had to put down?

Appreciation I have calculated in at 1-2% annually

Thanks for any help from anyone!