Buying package of 20 SFR - have we missed something?

[Yoni Rozenstein]

Greetings all.

We about to close (currently in the due diligence) deal of 20 SFR at the Metro Atlanta.

We have a bank loan for this deal of 70% LTV.

Here is our #'s , What do you think? have we missed something?

Property Information 

Total Cost of Project: $1,250,000.00

After Repair Value: $1,400,044.00

Down Payment:$410,000.00

Loan Amount: $840,000.00

Loan Interest Rate:4.5%

Income (before changing the rent rate) $14,650.00 , each SFR between 700-850$ mo.

Expenses

CapEX	219.75	1.0%
Insurance	565	4.0%
HOA	800	5.0%
Vacancy	1098.75	7.5%
Repairs	1098.75	7.5%
Mangment	1098.75	7.5%
Property Taxes	1415.42	10.0%
P&I (Loan)	4887.85	33.0%
Total	11184.27

Monthly Cash Flow : $3465.73

COC: 10.17%

[Adam Abdel-Hafez]

@Yoni Rozenstein I would have to agree with the others on your capex. 2004 is a newer house, but keep in mind that means the water heater, hvac system, roof, etc are all 13 yrs old. So in the next few years, all of these will need to be replaced more than likely. 

Also,  if you don't have one already, I would love to recommend a management company to you for your acquisition. I am a third-party contractor for them, so I am a little biased.  They manage for a lot of out-of-state owners as well as out of country owners.