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Updated over 6 years ago on . Most recent reply
Property in Long Beach, Feedback on Analysis?
Looking at this property in Long Beach and here is my analysis.
*Just for deal analysis practice, looking for some feedback to see if i should increase some expenses or add some missing expenses that I didn't account for.
240 E Louise St Long Beach 90805
Lets say I purchase for 365000
Maybe rent it out for 2400 (too low, too high?)
Expenses
Property Management Fees - NA | |
Repairs and Maintenance | 50.00 |
Real Estate Taxes | 400.00 |
Rental Property Insurance | 100.00 |
Vacancy | 100.00 |
Capex | 100.00 |
Monthly Operating Expenses | 750.00 |
Loan
Down Payment | 73,000.00 |
Loan Amount | 292,000.00 |
Acquisition Costs and Loan Fees | 10,950.00 |
Length of Mortgage (years) | 30 |
Annual Interest Rate | 5.000% |
Initial Investment | 83,950.00 |
Monthly Mortgage Payment (PI) | 1,567.52 |
Cash Flow: 2400 - 1566 - 750 = $82
ROI: 1.18%
According to this analysis, this isn't a good property to invest in. Any feedback would be appreciated!
Thanks in advance!
Peter Bui