College rental analysis

[Kyle Soderman]

I have been analyzing some deals in my area and have come across one that is of interest to me. This will be a college rental that is only 3 blocks off campus which is prime location for a college rental. 4 bed 1 bath SFR. Description: Updated Electrical. Spacious Kitchen. Cute Breakfast bar. Close to Campus. Onsite Parking. Convenient to Lake George, Gas Station, Food, and Bookstore. Large, Flat, Corner, Yard! 24 hour notice for showings. 

Here are the numbers:

Asking price: 89,900

Purchase price: 75,000 (this is the price that make the numbers work)

Operating costs:

Water: 75

Sewer: 25

Garbage: 25

Electric: 0

Insurance: 50

Lawn/ Snow: 50

Property tax: 1416.... 118/month

Vacancy: (3%) 38.40

Repairs: (7%) 89.60

Cap Ex: (10%) 128

Prop mgmt: (9%) 115.20  (I plan to self manage at first but later move to a PM)

Total operating expenses: 714.20/ Month

P&I: 286.45

Overall total expenses: 1,000.65/ Month

Total income: 320 per door= 1,280/ Month

Cashflow: 279.35/ Month   3,352.20/ Yr.

Closing cost: 2,000

Repair cost: 3,000 (have not walked the property yet, I am thinking it does not need much if any rehab)

Down payment: (20%) 15,000

Total cash needed: 20,000

COC ROI: 3,352.20/20,000= 16.76%

Sorry for the lengthy post. I would like to see what you all think of my numbers. Anything you notice may not be correct? Thanks!