Houston SFR turnkey analysis

[Sarah Lam]

Hi all, I'm currently evaluating a 4/2.5/2 turn key SFR located in the Cy-Fair suburb of Houston. Price is 105K, which looks to be right around market price. Just over 2000 square feet with good school districts, rent estimated at $1300. Local investors, please let me know if you think market value, rent, and expenses are reasonable.

Price: $105,000
Down payment: $26,250
Closing costs: $400

Monthly:

Rent: $1300
Vacancy (8%): $104 (1 year guarantee, but leaving this in anyways)
Taxes: $210
Insurance: $100
Maintenance: $100 (1 year home warranty, but still including)
PM (9%): $117
HOA: $38
Mortgage (30 yr @5.25): $435
CF: $196

Annual NOI: $2352
Cash on cash return: 8.8%

Appreciate any feedback! Thanks, guys!

[Sarah Lam]

Hey @Gil Dotan - just sent you a message. My preference is for multi family because of the reduced vacancy risk, but just know that multi's do tend to have a higher frequency of turnover (renters stay in houses longer), so expenses will be higher. There was a recent blog post on the pros and cons of SFR vs MFR investing here: http://www.biggerpockets.com/renewsblog/2013/10/21/pros-cons-single-family-rental-properties/

If I could find other SFR's that meet my personal investing criteria for the Houston area, I would definitely go for it. Again, my preference for SFR is market-specific. Different cities have different market conditions.

@Jerry W. - just sent you a message! :)