Buy and hold Rental SFR numbers
I'm in Dilemma in figuring out the number on couple properties that I about to submit an offer.
Prop1:
Asking price 170k
I'm submitting offer for 160k
Dp : 25%
tax 4688/year
HOA 350/annually
Ins 80/month
flood ins: 40/month
Rental is $1495/month, it can go up max 10% in 3 yrs lease, so i'm thinking to have 1545/month cuz the lease is due in Feb 2019.
Tenant will take care all the maintenance (Mowing lawn), Landlord is only responsible for Tax and insurance
But when I add Vacancy, Repair & maintenance, cap-ex, and management fees, never in my life I see cash flow positive, even when the rent is 1% or 1.5% from the asking price.
I'm not sure if I could have positive cash flow without putting huge down, even then my cash on cash will be very low.
Prop 2
asking price $211.500
thinkin to submit offer 200k
the amount of fixing isnt that much, just paint and cosmetic ($5000)
Dp : 25%
tax 5668/year
HOA 250/annually
Ins 80/month
flood ins: 40/month
Rental is approx $1750/month,
I put 5% on Vacancy, Cap Ex, repair and 7% for prop mangmt
Which came out negative for cash flow and cash on cash
So, do I have to low ball every offer, which I've done, but because it is competitive market, of course some of the seller didnt even bother to counter.
This is out of state investment , because at my backyard the price is double and some triple, it just doesnt make any sense.
Any advice, from y'all experience investor would be appreciated, just to make sure I didnt miss anything.
Thank you