Need some quick guidance on a deal

[Robert DelVecchio]

Good afternoon everyone.  I need a second pair of eyes to take a look at my numbers.  This will be my second property and I want to be sure everything looks good to before moving forward. I am open to any advice or pointers here. Thanks in advance. 

Here is the information 

Home - $150,000

Down Payment - 20% or 30k

P&I + Home owners - $800

HOA - $166

Total Monthly Expenses - $965.00

Expected Rent - $1,350

Monthly Cashflow- $384.45

Cash on Cash ROI - 13.55%

[Aaron K.]

Where have you accounted for property taxes or repairs/ maintenance or property management if you plan to go that route?

[Robert DelVecchio]

Thank you for the quick response. Please see updated numbers below in chart that includes insurance. HOA covers all outdoor maintenance (roof, yard, siding, trash) HVAC was replaced in the last 5 years. I didn't solve for any other maintenance costs.

HOA:	$166.00	P&I:	$635.05
Property Taxes:	$98.50	Insurance:	$66.00

Total Monthly Expense - $965.55

[Robert DelVecchio]

I would not be using property management for this property

[Aaron K.]

How did you calculate property taxes? They seem quite low to me.  Also you do need to include something for maintenance and repairs if you want to accurately plan.  Also management?

[Joseph ODonovan]

@Robert DelVecchio I would also account for vacancy and capital expenses. I understand the HOA covers the exterior parts of the property but you are responsible for anything inside your unit such as windows, bath n kitchen plumbing issues, furnace, hot water heater, etc.

[Shane Odom]

I would always add in PM like they said “just in case” and a vacancy percentage

[Robert DelVecchio]

Thank you to everyone who has replied. I appreciate your thoughts here. 

Repairs - Because the house was just remodeled completely I added in 3%

Vacancy - This townhome is in a hot area for rentals, less than 5 minutes from a top hospital and in a nice area overall. I added 3% which is on the low end.

Management - I will be managing this property myself

The property taxes were calculated by taking the (2017 county assessment * .95 tax rate) = 1186.00

Is the below cash-flow and cash on cash ROI good, great, bad or ugly?

After adding in repairs and vacancy here is how things add up.

$1,350.00MONTHLY INCOME

$1,073.48MONTHLY EXPENSES

$276.52MONTHLY CASHFLOW

7.51%PRO FORMA CAP

$11,270.00NOI

$34,000.00TOTAL CASH NEEDED

9.76%CASH ON CASH ROI

7.51%PURCHASE CAP RATE