Updated over 6 years ago on . Most recent reply
Condo Numbers For Houston
Hi,
I did the following numbers for potential deal in Houston. Can anyone take a look and let me know what I missed or did wrong? I got the spreadsheet from the rich dad website.
| PROPERTY INFO | |||||||
| Address | |||||||
| Type | Condo | ||||||
| Bedrooms/Baths | 2/2 | ||||||
| Square Feet | 922.9 | ||||||
| Year Built | 1977 | ||||||
| Parcel # | |||||||
| INCOME | Month | Year | Per sq. ft. | Total Insurance Estimate | $ 262.50 | ||
| Current rent | $ 800.00 | $ 9,600.00 | $ 10.40 | $ 21.88 | |||
| Less: vacancy allowance - 10% | $ 40.00 | $ 480.00 | |||||
| Net Rental Income | $ 760.00 | $ 9,120.00 | Property Taxes | 2.5264% | $ 505.28 | ||
| Plus: Other Income | $ - | $ - | |||||
| Total Income | $ 760.00 | $ 9,120.00 | $ 9.88 | ||||
| EXPENSES | |||||||
| Property Management | $ - | $ - | |||||
| Repairs & Maintenance | $ 100.00 | $ 1,200.00 | |||||
| HOA | $ 250.00 | $ 3,000.00 | |||||
| Advertising & Legal | |||||||
| Insurance | $ 167.00 | $ 2,004.00 | $ 2.17 | ||||
| Total Expenses | $ 517.00 | $ 6,204.00 | $ 6.72 | ||||
| Net Operating Income (NOI) | $ 243.00 | $ 2,916.00 | |||||
| Less Debt Service (PI) | $155.06 | $ 1,860.72 | $ 2.02 | ||||
| Less Property Taxes | $ 42.11 | $ - | |||||
| Net Cashflow | $ 45.83 | $ 1,055.28 | |||||
| Operating Expense Ratio | 68.0% | (Total Expenses/Total Income) | |||||
| MORTGAGE INFO | |||||||
| Total Loan Amount | $ 20,000 | ||||||
| Type of Loan | Seller Financed | ||||||
| Term (Months) | 240 | ||||||
| Interest Rate | .07 | ||||||
| Down Payment | $ 2,000 | 10.00% | |||||
| Monthly Payment (PITI) | $155.06 | ||||||
| Purchase Price | $ 75,000 | ||||||
| Closing costs | $ 3,000 | ||||||
| Rehab | $ 7,000 | ||||||
| Total initial investment | $ 85,000 | ||||||
| LTV | 27% | Loan Amount/Purchase Price | |||||
| Cap Rate | 4% | Annual NOI/Price | |||||
| Cash-on-Cash Return | 146% | Annual before-tax cash flow (i.e., NOI)/Down payment |