Hi there! My name's Alexa and my family has been buying rental properties for about 7 years now. I'm in college and recently have been learning more about rental properties and everything it takes to run them, find deals, etc. I found another property near the ones we own and wanted to analyze it using an excel spreadsheet. I found a few different templates on the internet but settled on a semi-simplistic one that I think (emphasis on think) I've filled out correctly. I wanted to see if the deal was good before bringing it to my father, but I just reconstructed the spreadsheet, and the questions I asked confused him a bit which confused me. He tends to group insurance and taxes into escrow(?) but I placed them in an expense/cost section along with water/sewer, trash, heat, electric, vacancy, management, maintenance, and capex. Here is the information I entered on the property:
| Purchase Price |
$139,900.00 |
| Closing Costs |
$8,000.00 (number came from my father - i originally put 3,000 but apparently 8k was his average closing cost for past properties) |
| Rehab Costs |
$2,000.00 (really nice property, I just added this in as a buffer but im also inexperienced in estimating rehab costs...:/)
|
| Down Payment |
$27,980.00 (20%) |
| Total Investment |
$37,980.00 |
| Amount Borrowed |
$111,920.00 |
| Unit 1 (3 bed/1.5 bath) |
$525.00 (rent we charge for our other properties) |
3 |
$1,575.00 |
there's also a garage that I didn't know how to work into the numbers, or if it even should be worked in
| Total Investment |
Loan Investment |
Interest Rate(%) |
# of Payments |
Monthly Payment |
Notes |
| $37,980.00 |
$111,920.00 |
4.88% |
360 (30 yrs) |
($592.29) |
Amortized Loan |
| Total |
$671.25 (month) |
$8,055.00 (annual) |
|
| Water/Sewer |
$40.00 |
$480.00 |
|
| Trash |
$62.50 |
$750.00 |
every 6 months (750/2) |
| Taxes (iffy on these #s) |
$267.50 |
$3,210.00 |
|
| Insurance (iffy here too) |
$65.00 |
$780.00 |
|
| Heat |
$- |
$- |
tenants pay |
| Electric |
$- |
$- |
tenants pay |
| Vacancy |
$78.75 |
$945.00 |
(5% of Income) |
| Management (we manage) |
$- |
$- |
(10% of income) |
| Maintenance |
$78.75 |
$945.00 |
5% of Income |
| Capex (roof, etc.) |
$78.75 |
$945.00 |
5% of Income |
| Income |
Expense |
Mortgage |
Monthly Cashflow |
Yearly Cashflow |
ROI |
| $1,575.00 |
$671.25 |
$(592.29) |
$311.46 |
$3,737.52 |
9.84% |
This ROI seems low. In some bigger pockets videos I've heard it should be above 10% and some will only move forward if the percentage is up near 20. I'm hoping all my numbers are right. It was difficult figuring out the property tax and insurance - there were different numbers listed so I got confused. I'd be super grateful for any help on this, or just someone to confirm I ran my numbers correctly or am headed in the right direction:)
