Deal analysis in Lubbock, TX

[Jing Xu]

HI Bp,

First time investor here. I have a sfh in Lubbock Texas. So I would like to run it across people in Bp to get some opinion. It is a brand new sfh for 327.9k with tenants in place. The neighborhood is Quaker ave and 130th street.

Down payment - 65580  (20% down)

closing cost - 4000

total cash investment - 69580

rental income - 2500

tenant pays all utilities (electric, garbage, water)

vacancy - 4% - 100

management fee - 5% - 125

repairs/maintenance - 4% - 100

insurance - 110

property tax - 450

mortgage - 1215

total expense - 2100

Cash flow - 400 / Month

CoC = 6.9 %

Does my calculation make sense? If so, is it an good/ok/bad deal? Thanks!

[Brittany Warner]

@Jing Xu like Stuart mentioned, unless you have a deal worked out with PMs already, expect 10%. Also, go to LCADs website and type in the address in the search engine. This will pull up exactly how much in taxes that has previously been paid on the house. I believe that is in the Lubbock-Cooper school district so expect the amount to increase as 3 new schools were just approved to be built.