All Forum Posts by: Mike Park

owned it for 2 years. no vacancy and repairs up to now. That's why my coc ROI is really good. I guess I try to avoid from MFR since they have higher vacancy rate and lower quality tenants.

I guess only way I can increase my coc ROI would be start off with the good home price. what do you think ?

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I have a 3/2 sfh in 38115, Memphis, TN. It is doing okay at the moment. I am getting ROI of 12.88% at the moment.

1) Any advice on the ideas to improve ROI for the next home purchase?

2) Is there any risk going forward in the future in cash flowing this property for the long term??

Monthly Operating Income	Scenario A
Number of Units	1
Average Monthly Rent per Unit	1,175.00
Total Rental Income	1,175.00
% Vacancy and Credit Losses	2.00%
Total Vacancy Loss	23.50
Other Monthly Income (laundry, vending, parking, etc.)	-
Gross Monthly Operating Income	1,151.50

Monthly Operating Expenses
Property Management Fees	105.00
Repairs and Maintenance	10.00
Real Estate Taxes	126.00
Rental Property Insurance	49.78
Homeowners/Property Association Fees
Replacement Reserve
Utilities
Pest Control
Accounting and Legal
Monthly Operating Expenses	290.78

Net Operating Income (NOI)
Total Annual Operating Income	13,818.00
Total Annual Operating Expense	3,489.36
Annual Net Operating Income	10,328.64

Capitalization Rate and Valuation
Desired Capitalization Rate	8.00%
Property Valuation (Offer Price)	129,108.00
Actual Purchase Price	119,900.00
Actual Capitalization Rate	8.61%

Loan Information
Down Payment	35,000.00
Loan Amount	84,900.00
Acquisition Costs and Loan Fees	1,500.00
Length of Mortgage (years)	30
Annual Interest Rate	5.250%
Initial Investment	36,500.00
Monthly Mortgage Payment (PI)	468.82
Annual Interest	4,428.72
Annual Principal	1,197.13
Total Annual Debt Service	5,625.85

Cash Flow and ROI
Total Monthly Cash Flow (before taxes)	391.90
Total Annual Cash Flow (before taxes)	4,702.79
Cash on Cash Return (ROI)	12.88%

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I am looking to add one more property, priced between 100k-150k in 38115(38141) or 38109. the target is usually a good cash-flow and long-term tenants, not necessary appreciation. These zip codes houses are also 1980>, requires less maintenance.

1) what is experts think about these areas in suburb Memphis? 38115(38141) vs 38109

2) Are they generally classified as class B and above neighborhoods?

3) do people recommend to purchase second property in a different city ?

4) please poke me if anybody has a good deal in these areas.

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I am usually keen of investing in Memphis area. I have been working with those local passive or flip investment companies.

My past experince with these guys is that the listing price for the renovated homes are on the higher side of market value. Sometimes, these guys gained by ~30k$ by transfering the title.

Meantime, Redfin and Zillow also provide the listings in the area. They are often price-negotiable.

What do you guy think of buying houses directly from Redfin adn Zillow? and ask some reputableproperrty managers to manage. Pros and Cons.? any experience? The idea is to purchase the house at the bargain price in reasonally good rent-ready shape.

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I see that

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I know from my experience that the investment property seems always little over priced and loan rate is also higher than conventional loan.

What do you guys think of 5.35% loan rate for the 30years fixed 25% downpayment at today's?

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All Forum Posts by: Mike Park

Mike Park has started 4 posts and replied 6 times.

Post: ROI analysis in 38115 SFH property home

Post: ROI analysis in 38115 SFH property home

Post: 38115(38141) vs 38109 (Cordova)

Post: Redfin/Zillow homes as opposed to homes from investment/flip llc

Post: inverstment property loan

Post: inverstment property loan