What if the numbers work out great and you have found yourself a good opportunity?

Do the numbers work out pretty close to what they advertise? 

Loan terms were good but numbers didn’t work out after analyzing the deal.One question though.

This is a great option assuming the numbers work out and you can service the loan payments.

PITI and HOA payments would work out to $1,052 combined.

Great work out there!  

Let me know if they work out!! 

In the end, it did work out well.Good Luck with your search.

@Eli KallisonAccount ClosedHere is a sample of working the problem:If you know you can get $1000 for rent then you start thereRent: $1000Plug in price of home: $100,00025% down = $25000Loan- $75,000 @ 3%Principal and interest- $316.20Taxes- $104.17Insurance- $29.17Vacancy 5% -$50Repairs 5%- $50Capex 10%- $100Tenanats responsible for: water, garbage, electricity, gas, gardening- $0Add your costs up- $649.54Rent minus costs- $1000 - $649.54 = $350.46 monthly cash flowYearly cashflow- $350.46 x 12 = $4205.52Cash on Cash return- down payment $25,000 + closing $3000 (3%) + Rehab $10,000- Total cash investment $38,000Annual cash flow $4205.52 divided by total cash investment $38,000 = .11067158 x 100 = 11.6% Cash on Cash returnChange the rent amount and the price of the home and plug them in and you can work out the number to see if it works for you or not.I hope this helps!

Hi Oriel,Both strategies can work out well for you.