Property Evaluation Check

[Ryan Sasscer]

I am considering purchasing my first investment property and would like to get some feedback to see if I am on the right track with my analysis, so here are the numbers:

Purchase price: $380,000

No rehab costs - It was recently renovated (fix and flip) and all four units are currently occupied

Rental income: $3,800 (4 units each renting at $950)

Estimated expenses (monthly):

- Property tax: $336

- Insurance: $228

- Management: $380

- Maintenance: $380

- Vacancy: $317

- Landscaping: $100

- Flood Insurance: $50

Based off these numbers, I estimate the cash flow to be approximately $200 per month which does not give a great CCR. Of course, if I get the property for a lower price the CCR will be better. So, for those of you who have done this before, what is a good price to offer on this property?