Am I doing this right? First time to learn not actual deal.

[Joshua Johnson]

I am just trying my hand at analyzing homes for buy and hold. Please any corrections, alterations, comments, or curses would be appreciated and will help me moving forward. Thank you for any help. 

https://www.coloproperty.com/listing/details/300015670

Home in Grand Junction, CO found while looking for a friend at possible homes for their family. Just figured it was as good of a place to start as any.

Here is what I was looking at for the breakdown.

Purchase price - 153,000.00

Financing - 122,400.00 at 4.5% for 30 years = 620.00 per month

20% Down payment (HELOC) - 30,600.00 at 5% for 10 years = 325.00 per month

Rent (Quick look) - 1,200.00 per month

Taxes - (On the website it says 630.00 but on the county website it has a formula with [Tax assessment value x Assessment rate (currently 7.96%) x Mill levy (last year was .088) which turns out to be 153,000 x .0796 x .088 = 1071.73 per year.] 1071.73 / 12 months = 89.31

Insurance - (Quick Google search for average) 106.00 per month

Vacancy Allowance - (Reading BP says factor 5%-15% so I am going with 10%) 120.00 per month

Repair Allowance - (Reading BP says factor 5%-15% so I am going with 10%) 120.00 per month

Capital Expenditures - (Reading BP says factor 5%-15% so I am going with 10%) 120.00 per month

Property Management - (Usually around 8%-12% so I am going with 10%) 120.00 per month

In this I am assuming that the tenant pays all utilities and yard maintenance so that isn't factored in.


So.... 89.31+106.00+120.00+120.00+120.00+120.00= 675.31 Total

So all that added up is....620.00+325.00+675.31= 1620.31 per month

420.31 over the 1200.00 rent
I know the deal won't work on this one I am just looking at my math to make sure I am factoring everything and just trying to start practicing.

Thank you again.