Need someone to look over these numbers...

[Wesley Adams]

I am currently searching for my first income property. i stumbled upon this and want to know what you all think.

Actual Valuation
Asking Price $32,900
Appraisal Value/ ARV $55,000
Est Rent per month: $825 per month
Est Expenses: $413 per month
NOI $413 per month
Desired Cash flow per unit: $200 per month
Number of Units 1
Total Desired Cash Flow $200 per month


Max Payment= $213 per month

Max Loan Amount= $37,425.87
Repairs/ Reno $0.00
Purchase Costs (~3-7% for residential $3,000.00

Max Offer $34,425.87

Down Payment $6,885.17
Est Mortgaged Amount $27,540.70

Est Mort Payment: $168.14
Monthly Net Profit $244.36
Annual Net Profit $2,932.29
Total Cash Investment $9,885.17
Annual Cash on Cash Return 29.7%

Value of 30% or more? 59.82%
A discount of: 40.18%

I'm not 100% sure i'm doing this right. I've tried to piece my spreadsheet together from others as well as Jon Holdman's posts......Is it true that based on these numbers and a mortgage of 20% down, 6.175% for 30 years that I can offer anything up to full asking price and still come away making $200 a month? Just seems too good to be true on a property that has been recently updated (not to say that I won't see issues once I visit the house).

[Account Closed]

The numbers sound good and the property is worth investigating in my book. You will want to verify the numbers. What kind of vacancies are normal in the area?

I agree with Mitch that 800 for rent seems high and you would want to investigate comparable rents in the area. If rent is to high you may be facing higher vacancies. So you want to learn what the market rents are.

You may want to get your own estimate of what the repair costs are likely to be.