All Forum Posts by: Rick James

Thanks!

house value/ price $80,000.00

I am figuring 15% ($12,000.00) down (plus closing costs ($2,300.00?)

No rehab.

Assuming a 15 yr mortgage at 6%
(I calculate $573.82 per month mortgage).

Current Rent $750.00 per month
Taxes $232.00 per year ($19.33 per month).

(note: the house is listed for $89K but has been for sale for a long time and I assume I can bargain). The house is in Downtown Dover - currently in section 8. From the outside, looks pretty sound. I have access to a recent inspection report but have not looked yet. I'm trying to see if this thing is even feasible.

Thanks for your offer of help!

Forgive me for asking questions that may have already been asked.

I would like to know the best worksheet to use to evaluate a property. I tried the one that is on this site. It looks comprehensive but I don't even understand what all the numbers mean.

I did my own using excel but it only covers the cost of the mortgage payment, taxes and insurance (this cost is subtracted from the rental income). It also divides the initial costs (down payment, closing costs) divided by the net positive cash flow to get a return on initial investment.

With pricing being down a little, this is the first time I've been able to show a reasonable positive cash flow (based on my evaluation form, which does not take into consideration any tax, appreciation or equity value).

What is the single best way to learn how to evaluate a property?