BRRR 3/4 THS deal analysis

[Eric Schrader]

Good afternoon group, I would love some comments about my deal review below:

Current REO 3 bdrm / 4 bath THS with garage. List 115k. Low end comps in the area over the past 6 months, 215k. Conservative rent 1650/month. Average vacancy time for rentals in the area for 2016 is 36 days. I have a lender that will do 15% down @ 6% for 30 yrs. I have 30k for a deposit/repairs.

Estimate:  carpet (1300 sq ft @ $5/sq ft) $5200

Appliances: 3500 for kitchen

Paint : 1000

Monthly Expenses 

HOA: 65 / Vacancy 130/ management 130/ capex 65 / maint 65 / utilities - tenant

Total 465

Purchase price 115k

Closing costs  5k

Repairs 10k

holding (2 months) 2k

15% down 17000

Ins 60/month

property taxes 172/month

Total monthly expenses $697   P&I payment $686  Total $1,383

Cash flow $266      Cash on cash return ~18%.  

based on the above, i am all in at 149k and based on the current ARV's i should be able to BRRRR this and do it all over again..

lawn care is included in the HOA fees.

Thank you for your time.

Eric