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Updated over 1 year ago,
Will this rental property has potential for cash flow with DSCR loan?
Hello fellow investors,
I'm a newbie. Please help me analyze the deal below to see if this rental property will cash flow at least $200/month? I run a general numbers but looks like it might not be positive cash flow.
Purchase price: 189,900
Down payment: 25% (37,500)
Interest rate: DSCR, I'm not sure what it is at the moment, maybe 8%, my credit score is above 740
First Year Income and Expense
Income: | $1,898.00 | $22,776.00 |
Mortgage Pay: | $1,045.06 | $12,540.77 |
Vacancy (5%): | $94.90 | $1,138.80 |
Management Fee (10%): | $180.31 | $2,163.72 |
Property Tax: | $375.00 | $4,500.00 |
Total Insurance: | $100.00 | $1,200.00 |
HOA Fee: | $21.00 | $252.00 |
Maintenance Cost: | $166.67 | $2,000.00 |
Other Cost: | $41.67 | $500.00 |
Cash Flow: | $-126.61 | $-1,519.29 |
Net Operating Income (NOI): | $918.46 | $11,021.48 |
What will make this deal work? Maybe offer at lower price like $150,000 or raise the rent, this property does need some simple cosmetic fix like paint and maybe new floor.
Thank you so much for your input, I appreciate your time.