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Updated over 7 years ago on . Most recent reply

User Stats

113
Posts
44
Votes
Victoria S.
  • Overland park, KS
44
Votes |
113
Posts

Purchasing first rental property

Victoria S.
  • Overland park, KS
Posted

Buying a HUD half duplex for $142000 in Shawnee KS. The other half sold for 165k earlier this year. Putting 25% down. Managing property ourselves. Going rent in the area is $1400 a month.

Monthly expenses are $891 (tax, mortgage, cap ex. repairs, vacancy-5%). I calculated $100 a month for repairs just in case. And we are approximating 5k (I'm being conservative) to fix up minor cosmetic issues (we already had an inspection).  Closing cost 2k. 

I calculated Cash on cash..came up with approximately 11%

Is this a decent cash on cash? I'm a novice at this and hope I calculated the numbers right.  Please help me out 😊

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