Closed on first SFR (With Numbers)

[Mark Payne]

Hi All,

I'll try to keep this short. I live in Hong Kong but purchased a SFR in Memphis, TN from the property manager who also rents out our family home near Memphis. Most of the concerns one might have investing from the other side of the world weren't present because the property manager is also a family friend. I also purchased this house with a partner. We would like to buy more together but wanted to test the partnership waters with a smaller investment. Costs not included below are the organization costs of our LLC. I'm trying to be conservative with Vacancy, CapEx and Mx. Let me know if you folks think I wasn't conservative enough. Really trying not to be long winded here so if your interested in more details just ask, I'm happy to answer.

Cheers,

Mark

House Info:

"C" Neighborhood

3 bed 1.5 bath w/ separate laundry room.

Brick Veneer, Metal Roof in excellent condition.

Money:

$38k Purchase Price

$10k Down Payment

$4,681 Closing/Acquisition Costs

$28k Financed @ 5.16%, 30 years.

Rent $691 (Section 8)

Monthly Expenses: 12.5% Vacancy, 10% CapEx, 10% Maintenance, 8% Management, 11% Taxes, 9% Insurance, P&I 22%.

Monthly Cash Flow: $118

Projected CoC ROI 9.66%