Please help with inputs. New investor have one STR doing great. Have opportunity to purchase townhome beach house 2 bed/2.5 bath several thousand dollars under asking price. Was told should rent 50k per year I figured $3800 to be conservative. COC is not good along with cash flow but everything else is great bc of location near the beach. Below is info.
| Return (IRR): | 15.13% per year | | Total Profit when Sold: | $364,560.29 | | Cash on Cash Return: | 325.79% | | Capitalization Rate: | 7.09% | | Total Rental Income: | $496,615.25 | | Total Mortgage Payments: | $293,370.44 | | Total Expenses: | $200,050.38 | | Total Net Operating Income: | $296,564.87 |
First Year Income and Expense| | Monthly | Annual | | Income: | $3,800.00 | $45,600.00 | | Mortgage Pay: | $2,444.75 | $29,337.04 | | Vacancy (5%): | $190.00 | $2,280.00 | | Property Tax: | $166.67 | $2,000.00 | | Total Insurance: | $516.67 | $6,200.00 | | HOA Fee: | $333.33 | $4,000.00 | | Maintenance Cost: | $166.67 | $2,000.00 | | Other Cost: | $300.00 | $3,600.00 | | Cash Flow: | $-318.09 | $-3,817.04 | | Net Operating Income (NOI): | $2,126.67 | $25,520.00 |
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First Year Expense Breakdown
59%5%4%13%8%4%7%MortgageVacancyProperty TaxTotal InsuranceHOA FeeMaintenance CostOther Cost
Breakdown Over Time
| Year | Annual Income | Mortgage | Expenses | Cash Flow | Cash on Cash Return | Equity Accumulated | If Sold at Year End |
| Cash to Receive | Return (IRR) |
| Begin | | | | -$111,900 | | | | |
| 1. | $43,320 | $29,337 | $17,800 | $-3,817 | -3.41% | $138,478 | $107,950 | -6.94% |
| 2. | $44,620 | $29,337 | $18,254 | $-2,971 | -2.66% | $171,012 | $138,653 | 8.42% |
| 3. | $45,958 | $29,337 | $18,721 | $-2,100 | -1.88% | $205,746 | $171,445 | 12.92% |
| 4. | $47,337 | $29,337 | $19,201 | $-1,201 | -1.07% | $242,834 | $206,474 | 14.63% |
| 5. | $48,757 | $29,337 | $19,694 | $-274 | -0.25% | $282,438 | $243,897 | 15.31% |
| 6. | $50,220 | $29,337 | $20,202 | $681 | 0.61% | $324,735 | $283,882 | 15.54% |
| 7. | $51,726 | $29,337 | $20,724 | $1,665 | 1.49% | $369,915 | $326,610 | 15.56% |
| 8. | $53,278 | $29,337 | $21,261 | $2,680 | 2.40% | $418,178 | $372,275 | 15.46% |
| 9. | $54,876 | $29,337 | $21,813 | $3,727 | 3.33% | $469,743 | $421,086 | 15.31% |
| 10. | $56,523 | $29,337 | $22,381 | $478,071 | 4.29% | $524,842 | $473,266 | 15.13% |
| Total | $496,615 | $293,370 | $200,050 | $364,560 | 325.79% | | | |
59%5%4%13%8%4%7%MortgageVacancyProperty TaxTotal InsuranceHOA FeeMaintenance CostOther Cost
Breakdown Over Time
