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Updated over 14 years ago,

User Stats

27
Posts
1
Votes
David Duong
1
Votes |
27
Posts

Deal analysis: SFH - Please Help

David Duong
Posted

Hi everyone,

I would truly appreciate it if someone could analyze my numbers to see if this property is a winner. I’m considering making my first offer; this is my first Single Family property analysis. My RE strategy is to buy and hold (become a landlord).

Tax appraisal is $124,000
Listing: $90,000 (short sell listing price by bank)
Purchase price: 84,000 (I believe I can get it for this price)
Down: 20%
Finance: $67,200
Rate: 5.1 (30 year)
Closing cost: $5,000
Total cash outlay: $23,800

Monthly rent: $1,100 (Real estate agent tells me that this is very accurate)

Monthly P&I: $366
Monthly Hazzard Insurance: 1000/12 = $83.34
Monthly RE taxes: 3400/12 = 283.34
Estimated monthly Maintenance & Repair: $50
Estimated monthly misc. cost: $50 (such as vacancy)

Total monthly cost: $832.60

My monthly positive cash flow is $267. I was telling my wife that if we purchased the property at $84,000, we would have instantly equity of at least $30,000. More importantly, we have positive cash flow of $267 coming in each month (assuming no vacancy and maintenance & repair remain stable).

Property is in a decent neighborhood. Stable local economy.

Am I missing anything? Is my analysis flawed? This seems like a winner to me. Completely new to RE and any insight or guidance will really help me. Thanks.

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