Help me evaluate my rentals.
Hello,
New to the forum here but have been messing with real estate investing for several years. Started off by buying personal homes at a bargain and fixing them up and selling them two years later at a profit. This past year I started a partnership with my father and brother and we have bought 6 rentals in one year with cash. I feel like I know my market well and have been buying close to the lowest prices that could be had. Two were purchased though realtor that were foreclosures, one was estate auction, and the other three were foreclosure auctions. Here is my concern when I run numbers on trying to get financing to buy more the numbers don't really add up to me. Then I see posts of people making 10-12% net on rentals. Mine are netting just under 8%. Some of the expenses are estimates such as repairs and vacancy. Below are the summary of the 5 properties that we currently have rented. The 6th one we started a new LLC and put it in there.
|
Total |
|
|
Cash Invested |
$482,957.10 |
|
Rent |
$64,500.00 |
|
Vacancy 10% |
$6,450.00 |
|
Tax |
$6,440.13 |
|
Insurance |
$4,251.00 |
|
Repairs |
$2,900.00 |
|
Managment |
$6,450.00 |
|
Net Income |
$38,008.87 |
|
Cash on Cash |
7.87% |
|
House 1 |
|
| Cash Investment |
$75,983.00 |
|
Rent |
$11,400.00 |
|
Vacancy 10% |
$1,140.00 |
|
Tax |
$1,386.25 |
|
Insurance |
$850.00 |
|
Repairs |
$600.00 |
|
Managment |
$1,140.00 |
|
Net Income |
$6,283.75 |
|
Return |
8.27% |
House 2
|
Investment |
$94,520.74 |
|
Rent |
$14,400.00 |
|
Vacancy 10% |
$1,440.00 |
|
Tax |
$1,558.81 |
|
Insurance |
$811.00 |
|
Repairs |
$600.00 |
|
Managment |
$1,440.00 |
|
net income |
$8,550.19 |
|
return |
9.05% |
|
House 3 |
|
|
Investment |
$159,583.00 |
|
Rent |
$17,100.00 |
|
Vacancy 10% |
$1,710.00 |
|
Tax |
$802.00 |
|
Insurance |
$1,000.00 |
|
Repairs |
$600.00 |
|
Managment |
$1,710.00 |
|
net income |
$11,278.00 |
|
return |
7.07% |
House 4
|
Investment |
$96,169.36 |
|
Rent |
$13,200.00 |
|
Vacancy 10% |
$1,320.00 |
|
Tax |
$1,483.07 |
|
Insurance |
$1,040.00 |
|
Repairs |
$600.00 |
|
Managment |
$1,320.00 |
|
net income |
$7,436.93 |
|
return |
7.73% |
House 5
|
Investment |
$70,500.00 |
|
Rent |
$8,400.00 |
|
Vacancy |
$840.00 |
|
Tax/Hoa |
$1,210.00 |
|
Insurance |
$550.00 |
|
Repairs |
$500.00 |
|
Managment |
$840.00 |
|
net income |
$4,460.00 |
|
return |
6.33% |
What are your thoughts on these numbers? Can you spot any issues? Any suggestions on financing options? Thanks.
PS the current market value of the 5 properties is $600,000
Pat