Rental Buy and Hold Analyze

[Yishi Pan]

Should I aim for more Cash on Cash ROI since it is my property or this would be a buy?

Will there be any other for see monthly expenses that I may not have taking into consideration?

Monthly Income: $2,200.00

Monthly Expenses: $1,815.61

Monthly Cash Flow: $384.39

NOI: $12,238.00

Total Cash Needed: $51,500.00

Cash on Cash ROI: 8.96%
 

Property Information

Purchase Price: $167,500.00

Purchase Closing Costs: $7,000.00

Estimated Repair Costs: $11,000.00

Total Cost of Project: $185,500.00

After Repair Value $200,000.00

Down Payment: $33,500.00

Loan Amount: $134,000.00

Loan Points: $0.00

Loan Fees:

Amortized Over: 25 years

Loan Interest Rate: 3.000%

Monthly P&I: $635.44

Vacancy $66.00 (3%) Repairs $110.00 (5%)
CapEx $176.00 (8%) Electricity $100.00 (5%)
Water & Sewer $100.00 (5%) Insurance $120.00 (5%)
Management $154.00 (7%) P&I $635.44 (29%)
Property Taxes $204.17 (9%) HWT Rental $25.00 (1%)
Heating $125.00 (6%)
Total $1,815.61 (83%)

Debt Coverage Ratio: 1.60

Appreciate your feed backs!

[Anthony Dooley]

@Yishi Pan If you spend $11,000 on repairs, there should be nothing budgeted monthly for Cap Ex or Repairs for the first year or so. The tenant should be paying the utilities, so your monthly expenses are extremely high. BTW, CAP Ex is a commercial property budgeting technique and not an actual monthly expense.