New Member From Scottsdale, AZ

[Jacob Ham]

Hello everybody,

I am a new member to BiggerPockets, and also definitely a noobie when it comes to real estate investments.

Currently I am working as a Franchise Development Director for Red Roof Inn, and I am starting to get a good amount of capital.

My goal is to Purchase my first Rental Property by the end of the year in the Phoenix area including all the surrounding cites, Scottsdale, Mesa, Tempe, Glendale, Etc.. I have around 20K for a down payment and looking for advice how to go about with it. And of course I am trying to get as much information as possible about this Industry. Would love to connect and sit down with anyone with the same interest to throw ideas back and forth and just build relationships.

I was looking at a condo in tempe near ASU, I have a friend with RealtyOnegroup that helped me with these numbers

Building Cost 99.5K

Mortgage 79.6k

Down Payment 19.9k

amortization 27.5

Ratio Information
Loan to Value 80%
Cashflow / Initial Investment 6%
Cashflow / Assets 1%
CAP Rate 6%

Mortgage Information
              Balance     Payment Interest "Loan Term" "Amtz Period"
1st Mtg $ 79,600 $    (392)        4%             30                360

#	Description(All Figures are Annual)		Annual Amount	Notes
1	POTENTIAL RENTAL INCOME			$ 9,000		Total Potential Income if rented 100%
2	Less: Vacancy							Assumed 2% Vacancy Factor
3	EFFECTIVE RENTAL INCOME			$ 9,000
4	Plus: Other Income					$ -		Other Fees, charges, etc
5	GROSS OPERATING INCOME			$ 9,000		Total Revenue
	OPERATING EXPENSES
6	Real Estate Taxes				$ 550			Property Taxes
7	Personal Property Taxes		$ -
8	Property Insurance				$ 400
9	Off Site Management				$ -
10	Payroll					$ -
11	Expenses/Benefits				$ -
12	Taxes/Worker's Compensation		$ -
13	Repairs and Maintenance		$ 250
14	Utilities
15	Accounting and Legal				$ -
16	Licenses/Permits				$ 100
17	Advertising
18	Supplies					$ -
19	Lawn and Grounds Keeping
20	Miscellaneous
21	HOA						$ 1,860
22
23
24	TOTAL OPERATING EXPENSES			$ 3,160		Sum of Line 6 thru 23
25	NET OPERATING INCOME			$ 5,840
26	Less: Annual Debt Service			$ (4,699)		Total Mortgage Payments
27	CASH FLOW BEFORE TAXES			$ 1,141
28	Add Back: Principal Payments			$ 1,316		Principal Paid on Loan
29	- Depreciation					$ (3,618)		Tax Depreciation on Building
30	TAXABLE NET INCOME (LOSS)			$ (1,161)

 Now is this even something worth looking at with a loss at taxable net income?