Beginner Purchase Metrics

[Jordan S.]

Hi guys, looking towards a first rental property and was hoping a few could review the hard metrics to see if this would be a good return.

Price=$400,000

Down=$40,000

Annual rental income=$27,000

Annual expenses=$9,500

Closing costs=$10,000

Mortgage payment annual=$20,800

With these I get a cap rate around 4.4% and cash on cash at -6.5%. Is there anything I am doing wrong?

Also, the ROI after year 1 is a consistent 10%, so what am I missing in the metrics?

Thanks all!