Opinion on deal analysis

[Steven Eastman]

Looking for my first deal and trying to educate myself. Here is something I am looking at in the Denver market. Even in Denver is $130 to slim of cash flow? Also, how heavily do you rely on Cash on Cash? This would be purely investment and therefore I need to do a conventional loan and downpayment. Plan would be refi in the future hopefully. All advice is welcome. Cheers!

[Chris Lopez]

@Steven Eastman Looks like a 2 bedroom condo. They are pretty rentals around town. Condos often have the better cash flow compared to others.

Your insurance seems high, we typically see $300 to $450 for a landlord policy

Your Capex and Maintenance is high. I use 5% total for both. The HOA covers a lot of the CapEx. If you want to be more conservative, use 8% total. Also depends on condition of the property. 16% is high.

For vacancy I use 5%/