Updated about 5 years ago on .
practice analyzing deal # 11
| Price | 1% rule = | desired rent | ||||||||
| 175,000 | 0.01 | 1750 | ||||||||
| Des Moines, IA 50314 | ||||||||||
| price | 175,000 | |||||||||
| closing co | 2500 | |||||||||
| monhrent | 1,475.00 | fully rented after required 1 year stay for FHA | ||||||||
| repairs | 2000 | cosmetic | ||||||||
| total cost | 181,157 | |||||||||
| Loans | ||||||||||
| price | 175,000 | Down % | | ||||||||
| downpay | 8750 | 5% | FHA | |||||||
| total loan | 166,250 | |||||||||
| Money Needed = | 14,907 | |||||||||
| MONTHLY ESPENSES | ||||||||||
| PAYMENT | $735 | |||||||||
| tax | $254 | M insure | H insure | |||||||
| insurance | $166 | 105 | 61 | |||||||
| vacancy | 73.75 | 5% | ||||||||
| repairs | 103.25 | 7% | ||||||||
| management | 0 | 0% | ||||||||
| CapEx | 147.5 | 10.00% | ||||||||
| utilities | 177 | 12.00% | ||||||||
| TOTAL | $1,657 | must pay | $1,332 | reserves | $325 | |||||
| EVALUATION | ||||||||||
| MONTHLY INCOME = | -181.50 | |||||||||
| YEARLY CASH FLOW= | -2178 | |||||||||
| CASH ON CASH = | -14.61107571% | 8%+ = good | 15%+ = amazing | |||||||
| price for good cash on cash = | 130,000 | if downpayment remains the same. | 160,000 if 20% down | |||||||
| for amazing cash on cash= | 119,000 | if downpayment remains the same. | 157,000 if 20% down | |||||||
| if repairs exceed. not too sure. |