Hi guys, Was wondering if you could check my Cap Rate & Cash on Cash Formula? Also, if you could provide any constructive criticism. PS. I did not add Income Tax, Depreciation, Amortization and not appreciation as that is just speculating. Thanks.

well, your $54 cash flow per month doesn't include the paydown of almost $400/month. this has 14 years left until it's paid off. A lot of people on BP ignore principal paydown; it's a great way to increase your net worth as opposed to a 75 year loan your grandkids will pay off. There are not always clear cut answers in real estate; simply just what your situation is.

No vacancies, repairs or maintenance??? Sign me up!

Jake Kucheck - I did not put vacancies, repairs or maintenance on my formula, but I do save for that. The numbers in my fomula is more concrete fixed cost/income. Scott W. - Yes, $111k with no repairs, this house was in move-in condition with all appliances, I purchased it in Dec. 2011. Had it rented out in Jan. 2012 and getting $1050. Same floor plan in my neighborhood that is comparable with the upgrades I have sold 4 months ago for $145k. My Mortgage, Property Tax, Insurance, Sewer, and Trash are real numbers. There are no estimates in my formula.

you sure you got the market rent correctly? $1050 for 1300 sq feet sounds off. $111k purchase price in vegas? i noticed no repairs needed. are you buying a flip & then planning renting it out? you can get tons of foreclosures in vegas for sure. just walk down the block & you'll several, I'm sure.

I stuck this file out there that might lend a hand. http://www.biggerpockets.com/files/user/d1beard/file/buy-and-hold-analysis

Expenses of $130 on $1050 in rent? Not a chance. That's way, way, way low. If you self manage, I'd assume 35% of rent, which would be $367. Less your $629 payment you're left with cash flow of $54 a month or $648 a year. Vs. your $25,530 investment that's a 2.5% cash on cash return. Paying $111K for $1050 in rent isn't going to produce much cash flow.

Could someone plesae check my formula?Could someone plesae check my formula?

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Could someone plesae check my formula?

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