Deal Analysis - Help verify my #'s
Hello all,
I've recently reached a point in my journey where I'm actively starting to dive into my market and run some #'s on properties. Since I'm in Las Vegas, I am looking at SFR's. The property I ran my numbers on is 8361 Charlton Valley Ct., Las Vegas, NV, 89123 (Zillow link: https://www.zillow.com/homedet...).
Listing price: $380,000
Est. ARV = $342,000 (running my own comps.)
Purchase Price = $275,000 (~80% of my ARV)
Loan product = Conv. mortgage 20% down ($55,000) @ 4% interest, 30 years
Rehab costs = $20,000 (guesstimate for my initial run-through of the property. I would like to make the kitchen/ bathrooms modern, new flooring, and put some established privacy plants in the 'backyard')
Rehab costs overrun = 10% ($2,000)
Purchase costs = 3% of purchase price ($8,250)
Gross rent = $1,900 (Using Rentometer. I started pulling my own rent. comps on Zillow and there was only property currently for rent. Not sure how to see properties that are already rented).
Vacancy = 8% of rent ($152/month)
Taxes = $1,461/year ($121.75/month)
Insurance = $1,026/year ($85.50/month)
Property Manager = 10% of rent ($190/month)
Maintenance = 15% of rent ($285/month) (Higher due to property year - 2004)
Cap.Ex. = 8% of rent ($152/month)
HOA Fees = $46/month
Utilities / Landscaping = $0 (paid by tenant)
Principal & Interest = $1,050/month
Operating Income = $1,748/month
Operating Expenses = $865/month (49% of income)
Cash in deal = $85,250 ($55k down + $8,250 purchase costs + $22,000 rehab costs)
Cash flow = -$167/month
CoC = -2.4%
Unless I can get this house for significantly cheaper, this is not at all close to a deal I would want. Plus I would have a bunch of money sunk into the property. Please take a look and let me know how my #'s look and any comments or suggestions you have. Thanks!