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Updated over 2 years ago, 03/07/2022

User Stats

18
Posts
5
Votes
Manny Garcia
5
Votes |
18
Posts

Homerun (don't think so), good, meh or hard pass deal in Georgia?

Manny Garcia
Posted

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

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