A Rookie DFW SFH Deal Analysis

[Zachary D.]

807 Dunkirk Ln., Arlington, TX 76017
3 Beda, 2 Baths
1,856 sqft

Sold for $116k in 2013.

Preface: In trying to develop a prospectus of sorts to present to lenders and other investors as I develop my business, I chose a sold home as my model for more accuracy. I also compared 3 properties similar in age, description, and location, although an agent could do this much better than I. I would plan on using property management, which is built-in to this analysis. The elementary school isn't good, but the middle and high schools are decent.

I'm supposing here that I am the one who purchased this home.

Zillow's Description: 

"Like new South Arlington home, Mansfield ISD, 2 living areas, formal dining and bfast nook, fresh paint and newer carpet, large fenced yard, 2-car garage, near shops and schools." - Zillow.com

Deal Analysis: 

Using the SFH Analysis Excel sheet by @Brandon Turner.

NOI: $10,185

Cash Flow:
Net Operating Income: $849
Mortgage: $470
Total Cash Flow: $379/Month 
Return on Investment: %17.08

( Cash flow Includes costs listed below but the spreadsheet forces $2,900 in closing costs, which may normally be paid by the sellar, I think. )

Purchase Price: $116k
Repairs: $500 ( Stated to have been like new. )
Downpayment: $23,200 (20%)
Financed Portion: $92,800 (80%)
Monthly Rent: $1600 ( Comparative + adjustment from Rentometer.com)

Vacancy Rate: 10%
Property Taxes: $270/Month ($3233/Year)
Insurance: $288/Month ($3456/Year) - Suggested on Spreadsheet
Maintenance / Repairs: $100/Month ($1200/Year) - Suggested on Spreadsheet
Advertising: $150/Month ($1800/Year) - Suggested on Spreadsheet
Administrative: $150/Month ($1800/Year) - Suggested on Spreadsheet
Utilities: Paid by tenant

Conclusion:

After comparing and running my numbers through Brandon's sheet, I feel like the final cashflow of $379 is a well-buffered number. Although I haven't seen the street and I haven't asked about disturbances nearby, I would call this ideal if there weren't any deal-breakers. 

I hope this was a successful pick and I'd appreciate any feedback  on this property!

-Zachary Durland ( DFW, back from Japan in May. )