Chicago suburb condo buy and hold

[Mark Doyle]

Looking to make an offer on my first rental property. It is a two bedroom, one bath condo unit in Oak Lawn, a southwest suburb of Chicago. Neighborhood is a nice, middle class area.

Listed as short sale on MLS for $60,000.

Market rent in the area is $1000/month.

Assessments are $2,364/year.

Taxes are $1,354/year.

Insurance is $600/year.

I estimated maintenance/cap ex in addition to assessments to be $1,000/year.

I estimated vacancy at 5%, or $600/year.

At 20% down, my principal/interest payments on a 30 year loan would be $250/month.

Water and garbage are paid out of the assessments, so that is an additional $0.

I will manage the property myself. So property management is $0.

So plugging all those numbers in, here are the results:

Total rental income per year - $12,000

Total expenses per year - $5,918

NOI - $6,082

Cash flow per month - $256.44.

Cap rate - 10.14%

Cash on Cash return - 25.64% (Property is turnkey. No money needs to be put into it upon purchase).

Seems like a great deal. Anyone see any flaws in my analysis? Thanks in advance for any help!