Help with the numbers for a subject-to deal

[Ashton McCants]

Hey guys. I was hoping that you guys could help me out with the numbers for this first deal I am working on. This home was built in 2006. The seller is motivated to get this deal done due to moving to another state very soon. Currently the ARV is worth $129,329. The home was purchased for $75,000 in 2014. The current monthly expenses are as follows: Principal ($119.01), Interest ($258.47), Tax - city/county ($154.60), Insurance ($115), Mortgage Insurance ($78.56) and Overage/Shortage ($19.68) for a total monthly operating expense of $745.32. The current rental rate for the area is $1150 (Zillow). I am currently using 2 separate calculator to calculate my monthly cashflow. One of the calculators has me cash-flowing at around $225 per month while the other calculator has me cash-flowing at just over $20 per month. Any help with the calculations would be greatly appreciated. Thank you in advance.

[Arun Iyengar]

@Ashton McCants,

Assuming you purchase this property for $129,329, put 20% down and get a 30 year mortgage for 4.5%, get $1,150 per month in rents, you would be cash flowing $3,135 per year.

However do note that rents from Zillow are not always accurate and you should check rents on Craigslist, Apartments.com or some other website to correlate that landlords are asking and tenants paying the $1,150 per month.

Hope this helps.