Buying from other investors
I am working with another investor who is getting out of the business. I've reviewed his 18 rentals and they all rent for $450 to $700.
Initially...looking at his asking prices and running through the SFR analysis, I didn't think they were so good...but I was using a 15 term with 25% downpayment.
Here's an example.
Price: $39,000
Downpayment: $9,750 (25%)
Closing: $1,500 (Going to use a line of credit on based on stock portfolio)
Pay LOC based on 30 year term: (Prime - 0.25% = 3.00%): $127/month
Income: $6,072 (NET with 8% vacancy)
Expenses:
Property Taxes: $1066
Property Insurance: $450
Repairs: $700
CapX: $500
Mortgage: $1548
Annual Cash Flow: $1828
COC: 16.25%
My spreadsheet: https://www.dropbox.com/s/e51inxidg4m0um0/analysis...
How does this look? Thoughts?
Kevin