Need help analyzing this turnkey property

[Li Tolentino]

I am a new investor looking to buy my first out of state turnkey rental property in Memphis. Looking for any feedback on my analysis of this deal captured below? 

Is 4% cash ROI and $1000 annual cashflow decent for B+ turnkey property in Memphis.

Any feedback will be really appreciated. 

-Li 

[Larry Fried]

Well, looking at this -  where you've included 8% for maintenance & repairs; 8% for vacancy is a decent amount for those soft costs.  So that certainly accounts in part for the low returns.

I will point out a couple of things that I think need adjustment.  I don't think you will get a 4.5% investor loan currently, especially with 20% down.  It is likely to be over 5%, maybe 5.25%+, unless you buy down with points. Have you checked with your lender?

Also, I don't think you included any of your closing costs in your cash out of pocket.  When calculating my cash on cash, I like to include the NRRC - non recurring costs, such as the lender, title, and appraisal fees, since those are sunk costs.