These Numbers Are Amazing. Am I Doing Something Wrong?

[Eliana F.]

Needing a second pair of eyes on this deal analysis!

I am in the market for my first deal and will be occupying one unit for a year or two to start. My goal is to buy and hold, and to cash flow even just a modest amount from the start. The New England market is, like all around the country, very much a sellers' market with low inventory. So this property perplexes me because the numbers are outstanding. What am I missing here?

I've been teaching myself 4-square analysis (from Brandon's YouTube) and learning to read the numbers. It's been interesting to see how the numbers tell a different story from the curbside appeal! I am running the numbers as if I were renting out the entire property, because that's the plan long-term.

Here are the figures:

$275k purchase price

total monthly income: $3350

total monthly expenses: $2732

total annual cash flow: $7416

total investment: $16,625

cash on cash return: 44%

THANKS!