Deal Analysis

[Don Bradley]

HI All,

I just had an offer accepted on my first property. I plan on living there and renting out the other extra 2 bedrooms. However, my analysis is based on if I didn't live there. Main objective is to cash flow as it's somewhat difficult to cash flow in my area. 

Please let me know your thoughts on my analysis as the property will be going into Attorney Review most likely tomorrow. 

Purchase Price: 240,000

Down Payment 5%

Monthly Rental Value $2,400

Property Taxes $5000

Vacancy Rate $2,400

Yearly HOA $3500

Maintenance $600

Insurance $300

Total Annual Opp 12,218

Total Operating Income $16,582

Interest Rate w PMI 4.75%

Estimated Mortgage Payment 1200

Monthly Cash Flow $217

Any comments would be greatly appreciated

[Brie Schmidt]

Rent $2400

P&I  $1200

Tax $416

Vacancy $240

HOA $292

Insurance $80 (more than you thought)

Repair $50

CapEx $50

Cash Flow $72

MAKE SURE YOU READ THE HOA BYLAWS!!! If the bylaws say you have any rental limitations even if they are not enforcing them now you are going to have problems down the road.