All Forum Posts by: Matthew Towner

But really I'm still figuring out what "good" actually is....

This is the report...... it does not look so good when I factor ALL the numbers. Closing cost, vacancy, repairs....

Report

Total operating expenses:	Mortgage expenses:
Vacancy:	$69.75	Repairs:	$69.75
Insurance:	$50.00	P&I:	$610.29
Property Taxes:	$208.33

Financial Info

Income-Expense Ratio (2% Rule):
0.87%

Total Initial Equity:
$36,200.00

Gross Rent Multiplier:
9.32

Debt Coverage Ratio:
1.63

Analysis Over TimeHide Assumptions

/year
Expense Increase

2%/year
Income Increase

2%/year
Property Value Increase

Year 1	Year 2	Year 3	Year 4	Year 10	Year 20	Year 30
Total Annual Income	$16,740.00	$17,074.80	$17,416.30	$17,764.62	$20,005.85	$24,387.02	$29,727.64
Total Annual Expenses Operating Expenses Mortgage Payment	$12,097.52 $4,774.00 $7,323.52	$12,097.52 $4,774.00 $7,323.52	$12,097.52 $4,774.00 $7,323.52	$12,097.52 $4,774.00 $7,323.52	$12,097.52 $4,774.00 $7,323.52	$12,097.52 $4,774.00 $7,323.52	$4,774.00 $4,774.00 —
Total Annual Cashflow	$4,642.48	$4,977.28	$5,318.77	$5,667.10	$7,908.33	$12,289.50	$24,953.64
Cash on Cash ROI	13.38%	14.34%	15.33%	16.33%	22.79%	35.42%	71.91%
Property Value	$164,220.00	$167,504.40	$170,854.49	$174,271.58	$196,258.10	$239,237.53	$291,629.22
Equity	$41,542.47	$47,040.22	$52,698.43	$58,522.47	$97,276.20	$179,520.98	$291,629.22
Loan Balance	$122,677.53	$120,464.18	$118,156.06	$115,749.11	$98,981.90	$59,716.55	$0.00
Total Profit if Sold	$11,484.95	$21,959.98	$32,936.96	$44,428.10	$124,899.32	$309,608.53	$580,436.75
Annualized Total Return	33.10%	27.78%	24.92%	22.89%	16.49%	12.16%	10.06%

Wow! That's great! Thank you for the input and mark for what I could expect. Seems I would be quite off if I went through with this deal. Do you get your stuff off the MLS or wholesalers? I've been in touch with a wholesaler in Spartanburg but have not found one for Greer and Greenville. I'm going to the next CRIEA Meeting in Greenville to attempt to make some contacts.

I have an opportunity to buy a single family home is Greer, SC. Price is $156,000 (no realtors involved) 3/2. Perfect rental, turn key. It is currently rented for $1250 but I know I can get $1395 as I have a similar smaller one not to far from this one that I rent for $1295. With P&I, taxes and insurance it would come to around $900 a month on a 30 year. Is this a smart purchase? I've been told by a successful land lord that rents out properties worth 30k for approx 600 month that this is not and I'm trying to understand why. Thank you for any input.