Houston Property Analysis (First)
I have yet to take steps on investing as I'm taking the next 6-12mo to read and absorb as much information as I can. That said, I'm running my own numbers on cash-on-cash ROI and I wanted to make sure I'm looking at these correctly. Please let me know if I'm not including any expenses or missing something key.
Property Details:
- 3 / 2, 1374 sqft, $89k asking
Expenses ($802)
P&I: $369
Tax: $188
Insurance: $70
Utilities: $50
Vacancy: 5% ($62.50)
CapEx: 5% ($62.50)
Total Investment (Down Payment + Closing + Repair) = $25,499
Rent = $1250
Cash Flow = $448
Cash On Cash ROI = 21.08%
This is a single family home in an area where I've competitively estimated the rent (Most units running between $1150 and $1450). I'm having the hardest time determining estimated utility costs (water). However even if I increase utilities, vacancy, capex by 5% all around, I'm still near $300/mo. As a side note, I would be managing this property myself and not running it through a PM.