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Updated almost 11 years ago on . Most recent reply

User Stats

48
Posts
14
Votes
Dean Suzuki
  • Investor
  • Mission Viejo, CA
14
Votes |
48
Posts

Help on Deal Analysis in Memphis

Dean Suzuki
  • Investor
  • Mission Viejo, CA
Posted

HI,

I'm looking at a deal in Memphis, TN (SFR, 3bd, 2ba, 1335sqft) from a turnkey provider at $77900 and wanted to get the community's feedback.

It just got leased with a tenant at $995/month on a 2 year lease.

The turnkey provider made it rent-ready (new AC/Furnance, carpet, flooring, etc.) so no fix-up costs.

  • Property taxes = $1490/year
  • Insurance estimate = $700/year
  • Property Management = 9%/month
  • Estimate vacancy at 8% (1 month)
  • Estimate maintenance at 10% (built in 1985)

income:  $995/month

monthly expenses:

  • $80 = vacancy
  • $124 = prop tax
  • $58 = insurance
  • $82 = prop mgmt.
  • $100 = maintenance
  • Total exp = $444/month

NOI = $551

With loan, 25% down, fixed 5% at 30 year

  • $322 ; Mortgage payments

$229 = net cashflow

It looks like its in a "B" class area.  Property appraised at 89K.

Any feedback appreciated.

Thanks,
Dean

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