SFH deal analysis -- thoughts??

[Keegan Darby]

Details: DSFH built in 1970. Rents for $750/month. Current owner is paying for new roof. 

P&I, tax, insurance: $327

CapEx: $100

Repairs: $100

Vacancy: $37.50 (5%)
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$564.50/month cost

So, $750 (monthly income) - $564.50 = $185.50/month = 185.50*12 = $2,226

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Down payment: $14k (20%)

Closing costs: $2k

= $16k

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$2226/$16000 = 13.9% CoC ROI.

Should I do it?

[Russell Schoepf]

Hey Keegan, I work with All County Expert Property Management here in Atlanta. I agree with Mitch that your vacancy rate is too low. Here in Atlanta it is especially important to have a strong understanding of the surrounding area your rental is located in. Your coc return can go south quickly with eviction proceedings and unexpected capx issues once your tenant moves in. You need a quality contractor to provide an accurate rehab budget. This should be included with your down payment to get the most accurate coc return. Being a property manager for several years as well as being a certified home inspector, I have managed any issue you could imagine. Was this property in South Atlanta? Please IM me if you have any questions, good luck!