Deal Analysis- First timer

[Dustin Dumbravo]

Looking to do a first time real estate deal as an investment. I’m active duty so looking to buy in my last duty station area. Looks like the numbers and analysis is already ran..just don’t know how good of a first time deal this is/is not. 

Cash on Cash ROI 14%

Purchase Cap Rate 7.72%

https://bp-v-newproduction.s3....

Thanks!

[Guifre Mora]

Originally posted by @Dustin Dumbravo:

Looking to do a first time real estate deal as an investment. I’m active duty so looking to buy in my last duty station area. Looks like the numbers and analysis is already ran..just don’t know how good of a first time deal this is/is not. 

Cash on Cash ROI 14%

Purchase Cap Rate 7.72%

https://bp-v-newproduction.s3....

Thanks!

If you're buying property as an investment, and will not occupy the property, you'll have to meet different criteria to get a mortgage. PMI doesn't cover investment properties, so you'll have to put down at least 20 percent, or even more, to get traditional financing. In this case, you have 20% so you don't need PMI.

Lenders assume on more risk with investment properties, so they might require 25 or 30 percent down, especially to qualify for better interest rates.

Your scenario has a 3.5% this kind of rate are usually to Owner-occupied loans so as an investor it might be too optimistic.

You are missing  Property Hazard/Insurance in the expenses. 

It's still a good deal. Your actual ROI is around 13% and COC $530 a month conservatively.