3/2 in Sanford, NC - Tear it apart!
Hey gang, considering this 3/2 in Sanford, NC. Looking to do an advanced cosmetic/partial mechanical rehab on it.
Here are the details:
- Beds: 3 Bed
- Baths: 2 Full Bath
- House Size: 1,634 Sq Ft
- Property Type: Single Family Home
- Year Built: 1964
- List Price: $39,500
Plan going in -
#1 - Buy & Hold
#2 - Resell for profit
#3 - Lease option
FARV (Fast Sell After Repair Value) $110,000
Going to offer $25,000, looking to get it for $30,000
Estimating $40,000 in repairs (roof, siding, HVAC etc)
Total project cost $70,000
Down payment $21,000 (30%)
Expected Rents $900 (Based on numbers from Zilpsy, Rentometer, Zillow and test Craigslist ads)
Breakdown of monthly expenses -
Total operating expenses: $380.00
Mortgage expenses: $278.22
Repairs: $90.00
CapEx: $90.00
Insurance: $60.00
Management: $90.00
Monthly P&I: $278.22
Property Taxes: $50.00
Total Monthly Income:$900.00
x50% for Expenses:
$450.00
Monthly Payment/Interest Payment:
$278.22
Total Monthly Cashflow using 50% Rule:
$171.78
Looks like almost a 9% Cap Rate, and 12% ROI. I'd like the Cap Rate to be higher, but the rents are low in our neck of the woods. Please tell me what you think, all feedback welcome!
Thank you!