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Updated over 2 years ago, 03/07/2022
Homerun (don't think so), good, meh or hard pass deal in Georgia?
BP Community,
After spending several months listening, learning and analyzing I am asking for a couple of minutes of your time to give me your opinion on the following deal (which would be my first one). Is it a homerun (spoiler ...I don't think so), a good, a meh or a hard pass deal?
Description: Portfolio composed of 4 single-family homes on a flat population growth small town in the Columbus area in Georgia.
Portfolio purchase price: $130,000 +6% closing costs
Portfolio repairs: $40,000 ($10,000 per house)
Financing: One loan for the 4 properties - 20% down @3.8% interest for 20 years
Total Monthly Rent: $2,050 (the four rents have stayed the same for the last 2-3 years. Not planning on raising them on the first year)
Insurance: 1.5% of portfolio purchase price
Repairs+maintenance: 5% of monthly rent
Vacancy: 6% of monthly rent
CapEx: 7% of monthly rent
Prop. Management Fees: 10% of monthly rent
......
Monthly Cashflow: $356
CoC ROI: 10.2%
......
1. As you can see I am running the numbers for these separate 4 properties as an combined portfolio (almost like a multifamily). Anything wrong with this approach?
2. Thoughts on my numbers? I've gone through this exercise for several properties but I could really use a pro's critique on my numbers.
Thanks so much for your help on the beginning of my journey!
Manny