Property analysis in Detroit suburb

[Devang Vora]

Hi all,

Finally, I've decided to be bold enough to invest in real estate. I've learned a lot from biggerpockets and now time to dive in. I wanted some help in analyzing this deal. 

1 bed/1 bath 645 sq ft. condo. Detroit suburbs. 

Purchase prize: $64,000

Repair cost: $1,000 (minor repairs that came up during inspection and a new refrigerator)

Market value: $69,000

Down payment $16,000 (25%)

Interest rate: 4.8%

Closing costs: $2,000

Taxes/annual: $100/month 

Insurance/annual: $35/month

PITI: $392/month

Rent: $850/month

HOA: $130/month

Vacancy 7%: $60/month

PM 8%: $70/month

Expenses: $260/month

NOI: $5,010

COC: 10.46%

Cap rate: 7.83%

Thank you. 

[Emilio Basa]

@Devang Vora - sorry, but one more thing. You should be making money when you buy your property. Which means the moment you buy it you are making money because you can sell it to someone else for a profit (wholesale the property). You shouldn't buy a property and hope the property value rises in "X" number of years and make a little off of cash flow. Rising property value and cash flow is a cherry on top, but more important is a low purchase price. Good luck!