My numbers don't match BP numbers

[Sheltocks M.]

Hi BP family:

Getting ready to bid on my first rental property and plugged in #s from my spreasheet into BP and the NOI and Cash on Cash ROI is way off. My cash on cash return is twice what BP shows and at 80k I dont even meet the 2% rule. I feel like I dont know if I should put in an offer or not. Please help me. Here is the info:

City: Hamilton, New Jersey

House: 3 bedroom 1 bathroom

Size: 1036 sq feet

Price 80K

I plan to put down 25%  (I have the money in my brokerage account but will borrow from my 401K instead (3.75%)

Rents in the area are $1350-1400 per month

Property tax $3,542

Please help. I truly appreciate it.

Sheldene

Confused

[Steve Babiak]

If your all in number is 80k and rents are 1350 - that's a good deal as long as the comps for resale are at least 80k (just in case you have to sell - and you might want to allow for closing costs say 10% so maybe comps should be 90k). And of course assuming decent tenants and decent area.