Deal Analysis on SFR Buy and Hold

[Christopher J Lemmon]

Here is my scenario: 

$37,500 purchase price

SFR - 4 bedroom 2 bathroom

$16000 Down payment and repairs. 

       DP $7500, CC $4500, Repairs $4000

Payment with Taxes and Insurance $286

Management = 10%

Repairs $50 monthly 

Cap Ex $100

Vacancy 8% = $116

Rent $1450

$1450-145-286-100-50-116= $753 Cash flow monthly. 

$753x12= $9036 NIO

Cash on Cash Return Estimated = $9036/$16000 = 56%

[Matt R.]

I'm not sure if "$41,500 house" and "$1,450/month rent on an SFR" go together, but it depends on the location. Around me (Kansas City), I'd have to spend something north of $150K on a SFR and repairs to get those kinds of rents.

I'm also not sure that $4,000 in repairs on a $37,500 house would be enough, but you have better knowledge of the property's condition.