Updated over 4 years ago on . Most recent reply
Groton, CT Househack Analysis
Hi all, this is my first post after lurking for a bit. Currently I'm active duty military looking to use a VA loan for a househack in the New London County/ SE Connecticut region. I've let a few potential buys slip by already in this market but another mls property is on my mind. I've done a showing today, just walking through with my agent and taking some pictures of any details that stood out. Here's the run down of my numbers for the property fully rented out with my very rough estimate of repairs and expenses to try and come up with a good offer for house which has been on the market for longer than normal. The house is listed for 250k and fully rented for 1100 month-to-month.
The rough estimates I'm using are:
5k paint (2% home value), 3k misc exterior, 4k misc interior
Thank you for your time!
P.S. I do intend to occupy the lesser unit but long term plan is to move out and hold the property, hence accounting for 2 units occupied.
| PRICE | $190,000.00 |
| UNITS | 2 |
| RENT CHARGED | 1100 |
| VACANCY RATE | 8.00% |
| DOWN PAYMENT | $0.00 |
| IMPROVEMENTS | $12,000.00 |
| CLOSING COSTS(%) | 2.00% |
| INTEREST RATE | 2.375% |
| MORTGAGE TERM | 30 |
| ROOF COST | 14000 |
| HVAC COST | 10000 |
| APPLIANCES COST | 10000 |
| TAXES | $3,000.00 |
| INSURANCE | $1,000.00 |
| MAINTENANCE (%) | 2.00% |
| UTILITIES | $125.00 |
| PROPERTY MANAGER (%) | 0.00% |
| OUTPUTS | |
| GROSS INCOME | $26,400.00 |
| ANNUAL INCOME | $24,288.00 |
| CASH OUTLAY | $15,800.00 |
| MORTGAGE | -$738.44 |
| DEBT SERVICE(ANNUAL) | $8,861.28 |
| TAXES(MONTHLY) | $250.00 |
| INSURANCE(MONTHLY) | $83.33 |
| PITI(MONTHLY) | $1,071.77 |
| UPKEEP(MONTHLY) | $327.08 |
| CAPEX(MONTHLY) | $177.78 |
| PROPERTY MGMT. (MONTHLY) | $0.00 |
| EXPENSES(MONTHLY) | $504.86 |
| EXPENSES(ANNUAL) | $6,058.33 |
| TOTAL EXPENSES(MONTHLY) | $1,576.63 |
| TOTAL EXPENSES(ANNUAL) | $18,919.61 |
| NOI | $18,229.67 |
| CASH FLOW(MONTHLY) | $447.37 |
| CASH FLOW(ANNUAL) | $5,368.39 |
| CAP RATE | 9.59% |
| ROI | 2.83% |
| CASH ON CASH RETURN | 33.98% |
| 1st YR EQUITY | $4,396.43 |
Most Popular Reply
good morning @Max Collins !!
First off, welcome! I haven't hawked the house you are looking at, but if it's too rough of shape, the VA is either going to say no, or beat up the current owner so much they'll not agree to repairs. VA and USDA are tough cookies when it comes to distressed homes.
Next, we have a BP monthly meetup here locally that @Mat O'Grady heads that will get you in touch with all sorts of great resources. That is if you aren't already in the group.
I can help you with trusted contractors and a "handyman" should you need it. Lets connect and I'd love to help out where I can.
-Dave
- David Wolber
