Real Estate Investor · Kyle, TX · Member since 2014 · 33 posts · 4 votes
Home is 2006 1354 sq ft 3/2/2 in immaculate condition - walked the home, it needs literally nothing. Home is one of only three on the street less than 2000 sq ft. Kitchen appliances convey, no fridge. Short sell offer of $95k. Comps have come in from $115k-127k, and none were in pristine condition. Shortsell situation.
HOA $250 annually
Taxes $2000 annually
FHA loan so PMI of $420 annually
Home owner's insurance $-500 annually
PM assumed 10% of rent (I will manage, but keeping it in the formula)
Vacancy 8.3% assumed
Administrative Fees $240 annually
I have utilized buy and hold spreadsheet (30yr long form) on BP Fileplace.
Home in NE San Antonio, newer homes, newer retail and GROWING. Area of home is nearly built out, not just neighborhood, but surrounding area allows for little new home construction. Looks to positively cash flow, rent demand outweighs the supply considerably. What am I missing?
@Timothy Edwards Just doing a quick glance, you are missing maintenance and reserves (this is a major item), leasing fees (some people may have this rolled up into Vacancy but I separate it out). For people to give you a more complete analysis, you will need to identify the rent comps, loan terms, interest rate, closing costs, rehab costs, etc.
You can type the address into rentometer . com and get an idea of rents in that area... I thought a FHA loan had to be used as your primary residence??
Sorry term I will have it as my primary residence initially for the first year. I forgot to put that in as well as the comps. Rent comps are 1100-1250. Maintenance I have at at $200 a month. There is ZERO rehab costs; it is like new including new carpet