3/2/2 buy and hold - first deal analysis needed

[Timothy Edwards]

Home is 2006  1354 sq ft 3/2/2 in immaculate condition - walked the home, it needs literally nothing. Home is one of only three on the street less than 2000 sq ft. Kitchen appliances convey, no fridge.  Short sell offer of $95k.  Comps have come in from $115k-127k, and none were in pristine condition.  Shortsell situation.

• HOA $250 annually
• Taxes $2000 annually
• FHA loan so PMI of $420 annually
• Home owner's insurance $-500 annually
• PM assumed 10% of rent (I will manage, but keeping it in the formula)
• Vacancy 8.3% assumed
• Administrative Fees $240 annually

I have utilized buy and hold spreadsheet (30yr long form) on BP Fileplace.

Home in NE San Antonio, newer homes, newer retail and GROWING.  Area of home is nearly built out, not just neighborhood, but surrounding area allows for little new home construction.  Looks to positively cash flow, rent demand outweighs the supply considerably.  What am I missing? 

Thanks in advance for helping out a true newbie. 

[Bill Jacobsen]

At rent of about $1,100 per month I calculate this as about an 8 Cap. As an investment it would work. Also, you have some equity.

Good Luck.

Bill