Houston SFR turnkey analysis

[Sarah Lam]

Hi all, I'm currently evaluating a 4/2.5/2 turn key SFR located in the Cy-Fair suburb of Houston. Price is 105K, which looks to be right around market price. Just over 2000 square feet with good school districts, rent estimated at $1300. Local investors, please let me know if you think market value, rent, and expenses are reasonable.

Price: $105,000
Down payment: $26,250
Closing costs: $400

Monthly:

Rent: $1300
Vacancy (8%): $104 (1 year guarantee, but leaving this in anyways)
Taxes: $210
Insurance: $100
Maintenance: $100 (1 year home warranty, but still including)
PM (9%): $117
HOA: $38
Mortgage (30 yr @5.25): $435
CF: $196

Annual NOI: $2352
Cash on cash return: 8.8%

Appreciate any feedback! Thanks, guys!

[David J.]

Disclaimer: I have no affiliation with the companies below. I use them as service providers and recieve no compensation from them.

@Kyle Crawford @Raymond B. The turnkey and management company is:

Texas Turnkey Properties

http://texasturnkeyproperties.com/

Real Property Management Preferred

Shawn and his wife Joni sell turnkey properties and run a full service property management firm. You do not have to buy a turnkey property from them to have your house managed. They manage a small portion of my portfolio and I have been very happy with them. They have been very responsive and have proven to be honest and straight forward with pricing and status updates. They may even consider me a high maintenance client due to the closeness of my involvment. They always respond to my emails in a timely fashion and in a way that makes me feel they know exactly what the status of each of my properties are and are taking the appropriate actions to handle any issues that come up.

Tell them I sent you over and they may give you a break on their already reasonable rates. For the record, I think the management fees in the area are pretty standard. It is the in-house maintenance and rehab experience that saves me money. Since they run a turnkey company they have all the systems in place to rehab and manage under one roof. For example, they have their own rehab crews and have consitently outbid my contractor bids and do similar quality work. I also always know the exact finish out I will get on a rehab because they have rehabbed 100s of houses and can walk you through before and after projects and do similar work on every rehab. They just make it easy for me.

Just my 2 cents.