New SFR Analysis!

[Account Closed]

My realtor sent me a foreclosure that hit the market this morning. He told me there are several showings scheduled today so I'm hoping to take a peek at it as well.

Bank of America, asking 69,900.

I'm thinking of borrowing $60k @ 10% APR from a private lender.

Cash offer of 55k.

$85k appraisal (conserative) would give me 68k cash back.. so after paying closing costs, and the investor back, I would have about 3k.

68k loan, 5%, 30year = $365/month = 4380/yr

Rent = $750/mo = 9000/yr minus 4380 DS = 4620 minus 1000 for taxes and insurance = 3620, minus 10% vacancy, and 10% capex = 2900 cashflow/year or 241/mo.

I plan to self manage, put even if I added another 10% for PM, I would still be above $200 CF.

Is this a good deal?