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Updated over 1 year ago on . Most recent reply

User Stats

32
Posts
13
Votes
My Nguyen
13
Votes |
32
Posts

Will this rental property has potential for cash flow with DSCR loan?

My Nguyen
Posted

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. 

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