2nd Deal Analysis - Cambridge, Ontario, Canada

[Greg Yandle]

Hey everyone,
It's Greg again with another deal for review. I used conservative numbers with this one. Please give all the feedback, advice and crisitism you have. I'd love to hear about errors, omissions, unrealistic figures. Just trying to get my analyses as accurate as possible!

https://www.realtor.ca/real-estate/22228381/766-walter-street-unit-f-cambridge#view=neighbourhood
3 Bed, 1 Bath Single Family built in 1973. Several elementary schools, high schools and retail centers nearby. 3 Post-secondary schools in the area as well.

Conservative Cash Flow (10% Vacancy): $86 / mth
Less Conservative Cash Flow (6% Vacancy):  $170 / mth
CoC Return: 55%

Purchase Price: $199000
Down Payment (20%): $39800
Mortgage (3.0%, 25 year): $159200 = $753 / mth
Closing Costs: $4000
Land Transfer Tax: $1715
Total Cash Required: $45515

Rooms: 3
Rent: $700
Rental Income: $2100

Mortgage Payment: $753
Property Tax (1.18%): $196
Insurance (Very Conservative): $150
Repairs (10%): $210
CapEx (10%): $210
Vacancy (10%): $210
Management Fees (10%): $210
Utilities: $75 (Tenants pay portion)
Total Expenses: $1930 / mth

Cash Flow: Income - Expenses: $2100 - $2014 = $86
CoC Return:  Annual Income - Cash Required: $25200 / $45515 = 55%
NOI: Gross Income - Operating Expenses (excluding Mtg): $2100 - $1177: $923

[Carmen Pellegrino]

I would say no should be net income after all expenses divided by cash total in. Think about it like you have a lump sum of cash and you can invest it anywhere. What is your return going to be in those various investments? $45000 at 8% in the stock market would make you $3600.00 in one year, this investment after all expenses will net you around $700 for the same $45000 tied up. $700 is not enough money to go through all the headaches of closing the deal. 

I like this analysis so I can compare the deal and make sure I am making more money then if it was just sitting int he stock market with no tenants to manage or repairs to make.

Looks like you have expenses figured out just need to plug them in right so you understand what you will be making.