Advice in a Deal Analysis in Richmond, VA

[Paul Rolon]

Hi everyone,

I am currently analysis a deal in Richmond, VA in North Chesterfield. Its a Buy and Hold. This is my first deal, I am doing a buy and hold strategy for a 3 bed 2 bath house around the Midlothian area.

Purchase Price: 150,000

Mortgage with taxes and Insurance: 740

Maintenance cost: 74/month ( had the house inspected and its in really great shape only minor cosmetic things)

Total Expense: 814

Rent Range: 1100-1300 

Expected Rent:1,150

Expected Cash Flow: 336

Is this a good deal? Any advice or recommendations would be really appreciated. 

[Paul Rolon]

I have a 3% loan 30 year fixed for up to 150k. I am going to put 12,500 down which is 7.5%, i used a VA Loan.

I was able to get a VA grant and the seller to pay all the closing cost. The mortgage is 579.71, taxes 110.38 and insurance is 50. But yeah i didn't even think of the vacancy and the cap exp. After factoring those cost with 1150 my annual return is -0.20%. Yeah this deal sucks. lol Even if I raise the rent to the max at 1,300 my return its only 5.8%. Thank you for the advice this is probably why there is so many similar listings like this one out there.