How's this deal look?
I"m in search of my first rental property. Here's one I'm considering putting in an offer in on. It's a 3 bedroom 1 bath 1200 sq ft SFH in Marion, Iowa. It's over 100 years old but looks to be in decent shape and rentable basically as is. I'm estimating $3000 for some carpet and paint to spruce up the place. And possibly to move the washer/dryer hookups. The current placement seems weird because it would block access to the basement. They're asking $66k and it's been on the market the better part of a year.
Estimated Rent: $700
Vacancy: $58 (1 Month/Yr)
Taxes: $105
Maintenance and Repairs: $105 (15% of rent)
Management: $70 (10% of rent, though I'll actually manage it myself)
Insurance: $50 (estimated)
Tenant will pay utilities.
If I assume a 5.25% interest rate, 20% down, and want a 10% Cash on Cash return, the most I could offer is $47k with the seller covering closing costs. That would make the mortgage payment $208. Total cash flow would be $104 per month with $12,400 needed for down payment and up front repairs.
So how do you guys think this deal looks?
Can anyone with knowledge of the area verify if the rent estimate is reasonable?