Condo rental analysis

[Kay Kim]

Hi

I am a newbie investor who's trying buy his first investment property. I looked around SFR around my area and it's really hard to find one with more than 100 cash flow and 12% CoCROI. I have read several posts that warn about investing in condos for rental. This condo that I am considering shows 12.5% CoCROI if my calculation is correct. Since I am new and I don't want to dive into something that has bad potential that I am not aware of right now. Can you experts please check my math and give me your opinion about it?

###

This is 4br/4ba condo for college students. I am planning to rent each room with bath to individual students and kitchen and living room area will be shared.

### Facts on the condo

Bed: 4

Full bath: 4

Year built: 2015

Occupancy rate: pretty good (Students seem to have hard time getting into this complex)

Rent income: 450 * 4 = 1800

### Price

Sale price = 120000

Down payment = 24000

Closing cost = 5000

Rehab = 0 (It doesn't look like it needs anything to get it ready for rent. It looks ready.)

Cash out of pocket: 24000 + 5000

### Expanse per month:

HOA = 170

Utility = 250 (I got this number from the owner of another unit in this complex.)

Repair = 100

CapEX = 100

Vacancy = 100

Management = 100 (It will be pay to myself for a while.)

Tax = 1700/12 = 141

Insurance = 50 (This is estimate. I assume condo insurance is cheaper than SFR insurance.)

Mortgage P&I = 486

### Numbers that matter

Cash flow = 303 / month

ROI = (303 * 12) / 29000 = 12.5%