Excited About Our First BRRRR Deal
Hey everyone! My wife and I are closing on our first buy & hold on the 18th of this month! The numbers look good:
Location: Broadway House
Number of Units: 1
Rent: $1,350.00
Square Feet: 1,666
Upfront Costs:
Cost per Unit $95,000.00
Price: $80,000.00
Cost per Square Foot: $57.02
Cap Improvements & Repairs: $15,000.00
Cash on Cash Return: 19.84%
Total: $95,000.00
Debt Coverage: [minimum 1.6] 1.78 20% Down: $19,000.00
Capitalization Rate (ROI) 9.05%
Current Assessed Value: $29,666.00
Loan Amount: $76,000.00
Net Cash Flow per month: $314.08
Interest: 4.88%
Net Cash Flow per month per unit: $314.08
Term (yrs): 30
Total Rent/Month: $1,350
GROSS SCHEDULED RENTAL INCOME: $16,200.00
Less: Total Annual Debt Service: $(4,826.40)
Less: Operating Expenses: $(6,470.63)
Less: Vacancy and Credit Losses (7%): $(1,134.00)
NET CASH FLOW: 3,769
NET OPERATING INCOME - (NOI): 8,595
INTEREST: 3,680
DEPRECIATION: 3,455
NET INCOME: 1,461
Property Insurance: $1,000.00
Property Management (10%): $1,620.00
Placement Fee (30%): $405.00 Real Estate Taxes (5.06179%) $1,501.63
Repairs and Maintenance (12%) $1,944.00
Services:
Snow Removal: 720
Utilities:
Electricity: N/A Gas and Oil: N/A Sewer and Water: $30.00/mo
Other