Would You Do This Deal on a SF Buy/Hold?....

[Brandon Sturgill]

2 bedrooms, 2 bathrooms.

Purchase Price:	$50,000.00
Purchase Closing Costs:	$1,500.00
Estimated Repairs:	$5,000.00
Total Project Cost:	$56,500.00
After Repair Value:	$85,000.00
Down Payment:	$12,500.00
Loan Amount:	$37,500.00
Loan Points:	$750.00
Loan Fees:	$1,600.00
Amortized Over:	30 years
Loan Interest Rate:	4.75%
Monthly P&I:	$195.62
Total Cash Needed By Borrower:	$21,350.00
Monthly Income: $750.00	Monthly Expenses: $552.37	Monthly Cashflow: $197.63	Pro Forma Cap Rate: 8.35%
NOI: $4,719.00	Total Cash Needed: $21,350.00	Cash on Cash ROI: 11.11%	Purchase Cap Rate: 9.44%

Total operating expenses:	$356.75
Mortgage expenses:	$195.62
Vacancy:	$60.00	Repairs:	$60.00
CapEx:	$60.00	Insurance:	$85.00
Management:	$60.00	P&I:	$195.62
Property Taxes:	$31.75

Financial Info

Income-Expense Ratio (2% Rule):
1.33%

Total Initial Equity:
$47,500.00

Typical Cap Rate:
8.00%

Gross Rent Multiplier:
5.56

Debt Coverage Ratio:
2.01%

ARV based on Cap Rate:
$58,987.50