Just purchased my first rental property and wanted to share the financials. Feeling pretty positive about the purchase. The maintenance estimate might be low but I have lots of wiggle room.
Purchase price: 106000
Closing costs: 1150
Down payment: 26500 (25%)
Interest rate: 5.125%
Year built: 1957
Property Mgmt: 1350 (10% gross)
Income (first year)
Gross Rent: 15000 (625/unit/month)
Vacancy rate: 10%
Vacancy loss: 1500
Total expenses: 4725
Cap rate: 8.19%
Mortgage payments: 5194
Cash flow: 3581 (149/unit/month)
Cash ROI: 12.95%
Equity accrued: 1148
Total return: 4729
Total ROI: 17.1%
@Mike Nugent, that's great! I used to live in the Phoenix area and there are some incredible deals in that market. If you are interested (and not already involved) there is a really good meetup group for networking. E-mail me and I'd be more than happy to pass along the information.
Sounds like an amazing deal. I was looking at one similar (almost identical on 19th Ave/Peoria) in north central phoenix last week. If this is your first deal - congratulations! You got a good one!!
Mark, congrats! sounds like a solid deal.
Congrats getting that first one in the books!
Those numbers are GREAT! What part of town is this property located?
The property is at N 32nd St and E McDowell Rd.
I analyzed about 200 properties to find this one. I wrote some software to do this for me so I wouldn't have to manually enter the figures in Excel. Time, patience, and persistence wins.
Looks lovely! Congrats!
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