Deal Analysis On Buy & Hold Single Family

General Landlording & Rental Properties
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Deal Analysis On Buy & Hold Single Family

Chris Mackey
Beachwood, NJ · Member since 2017 · 11 posts · 1 vote

I am currently analyzing a single family home as a potential buy and hold deal and am looking for further input.

Here are the important details:

Price: $160000

Local Comps: $200k-$220k

Down Payment: $32000

Closing Costs: $5000 (estimated)

Rehab Costs: $15000-$20000

Monthly Rent: $1800-$1900

Mortgage: $1254 (includes principle, interest, property tax, insurance)

Vacancy 5%: $90

Repairs 10%: %180

CapEx 5%: $90

Cash Flow: $186-$286/month

I am still new at this, but came up with a 3.9%-6.0% COC return. While not great compared to other investment vehicles the potential ARV is appealing to me.

Is there anything else I should be factoring in, and if not, your thoughts on the deal?

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  • Jerome MorelosPro Member
    Redlands, CA · Member since 2017 · 205 posts · 88 votes
    9y
    What about a property manager? Are you managing it yourself? Even if you are, I would still include that just in case you decide to outsource it in the future.
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  • Chris Mackey
    OP
    Beachwood, NJ · Member since 2017 · 11 posts · 1 vote
    9y
    Originally posted by @Jerome Morelos:

    What about a property manager? Are you managing it yourself? Even if you are, I would still include that just in case you decide to outsource it in the future.

    I have not factored in PM as I will be managing the property. If I were to add a PM to the equation I would be at roughly $0-$100/mo cash flow.

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