All Forum Posts by: Leon Collins

Well, there is no right or wrong way to calculate a property. If I were you, I would run the numbers like this: Offer Price $85,000 with 20% dn. (instead of $99k. Closing cost $3k, appraisal & inspection $750), Monthly Income $1,200 (raise the rent by charging for the ensuite – 4/2 instead of 3/2), Monthly Expenses $908.99 (instead of $921.08; tenants pay all utilities), Total Cash Needed $25,750 (instead of $105k and your $5000 for repairs is still included), Monthly Cash Flow $291.01 (instead of $213.92), and your Cash On Cash ROI would be 13.5% (instead of 2.43%). This is possible with 5% for repairs, and 10% CapEX. This is one way I would do it. If you still need help with this, I'll be glad to share the spreadsheet I used.