Rental Property Analysis (Union City)

[Claire T.]

Hi! I am new to REI and want to get y'all's thoughts on this rental property in Union City, GA.

1 Bed / 1 Bath, 871 sqft, in a gated community, HOA $280/month. Cash purchase price is $34,900. I estimate the repair cost to be $5, 000.

Below is my cash flow analysis for the property after repair: 

$600*12 months = $7200 in gross rent

Less $600 for one-month vacancy each

-> $6,600 Gross operating Income

Less 25% in expenses (maintenance, CapEx, property management, HOA fee)

Less property tax $350 (1% of purchase price)

Less insurance $220

-> $4,380 Net Operating Income 

I look forward to your input on the analysis. My main concern is the high HOA fee, $280 seems high.