Real Estate Deal Analysis & Advice
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 8 years ago,
Need feedback on first analysis
This is my first time analyzing property and would appreciate some feedback on my analysis. I have an email out to realtor for the comps and est ARV. We are looking at this as a possible buy and hold. The house has just had the kitchen and bath remodeled and has some updated fixtures. I estimated around $2k for paint and flooring. This is a foreclosure that was originally listed at just under $40K and now list for $15k. Average rents for the are are $420. I think we could get a little more than that. It is 1977 sq ft on a 6098 sq ft lot. It has a partial basement and hardwood flooring and HVAC.
Sorry for the large post. Any feedback would be greatly appreciated! Also any info on hard money lenders to check into would be helpful.
| Rental Property Cash Flow Analysis | ||
| 2 br 1 bath Brick | ||
| Monthly Operating Income | Scenario A | Scenario B |
| Number of Units | 1 | |
| Average Monthly Rent per Unit | 450.00 | |
| Total Rental Income | 450.00 | - |
| % Vacancy and Credit Losses | 5.00% | |
| Total Vacancy Loss | 22.50 | - |
| Other Monthly Income (laundry, vending, parking, etc.) | - | |
| Gross Monthly Operating Income | 427.50 | - |
| Monthly Operating Expenses | ||
| Property Management Fees | 10.00 | |
| Repairs and Maintenance | 45.00 | |
| Real Estate Taxes | 30.83 | |
| Rental Property Insurance | 25.00 | |
| Homeowners/Property Association Fees | ||
| Replacement Reserve | 79.19 | |
| Utilities | ||
| - Water and Sewer | ||
| - Gas and Electricity | ||
| - Garbage | ||
| - Cable, Phone, Internet | ||
| Pest Control | ||
| Accounting and Legal | ||
| Monthly Operating Expenses | 190.02 | - |
| Net Operating Income (NOI) | ||
| Total Annual Operating Income | 5,130.00 | - |
| Total Annual Operating Expense | 2,280.24 | - |
| Annual Net Operating Income | 2,849.76 | - |
| Capitalization Rate and Valuation | ||
| Desired Capitalization Rate | 8.00% | |
| Property Valuation (Offer Price) | 35,622.00 | - |
| Actual Purchase Price | 15,000.00 | |
| Actual Capitalization Rate | 19.00% | - |
| Loan Information | ||
| Down Payment | - | |
| Loan Amount | 15,000.00 | - |
| Acquisition Costs and Loan Fees | 2,000.00 | |
| Length of Mortgage (years) | 20 | 20 |
| Annual Interest Rate | 4.250% | |
| Initial Investment | 2,000.00 | - |
| Monthly Mortgage Payment (PI) | 92.89 | - |
| Annual Interest | 628.10 | - |
| Annual Principal | 486.53 | - |
| Total Annual Debt Service | 1,114.62 | - |
| Cash Flow and ROI | ||
| Total Monthly Cash Flow (before taxes) | 144.59 | - |
| Total Annual Cash Flow (before taxes) | 1,735.14 | - |
| Cash on Cash Return (ROI) | 86.76% |