2 SFRs in Indy for 10% down. How did I do?
I started looking in Indy for one SFR to get my feet wet in a new market. I have two SFR in Stockton, CA and that market is now overvalued. In the middle of my search I heard that HomePath was doing 10% down with no MI on non owner ocs. My lender confirmed this and we are now in contract with these terms. As long as the inspections and underwriting go well I will be closing in a few weeks. The ROI and net cashflow are a bit lower than I would like but still better than what I'm getting in CA, I was also very conservative with closing and repair costs. I can still walk away only losing my $500 EMD so speak up if you see any issues!
Here are the numbers:
House A:
Built in 1990s 3/2.5 1600 Sq Ft. Nice street in a mixed area. Schools are mediocre. Similar smaller 3/2 across the street rented for $1199 in August. Minimial if any repair required.
Purchase price: $116,000
Down payment: $11,600 (10%)
Closing costs: $3000 ( projected )
Repairs: $1000 ( projected )
Rent: $1250/mo ( see note above )
Mortgage: 5.2% fixed 30yrs.
Insurance: $81/mo ( does this seem high to anyone familiar with Indy? )
Taxes: $247/mo (~30% higher than neighboring houses of similar size. Dont know why yet. Should I appeal the assessment? )
PITI: $900/mo
Expenses:
Vacancies (8.3%): $104/mo
Management (8%): $92/mo
Maintenance: $50/mo
HOA: $22/mo
Total expenses: $268/mo
Cash flow: $82
ROI: 6.2%
House B:
Built in 1980s 3/2 1800 Sq Ft. on 1+ acre lot. Nice area. Schools are mediocre. Rent comps are hard because not many in this neighborhood are rented. Sales comps are in the $150k-$180k range. Minimal if any repair required.
Purchase price: $134,000
Down payment: $13,400 (10%)
Closing costs: $3000 ( projected )
Repairs: $1000 ( projected )
Rent: $1300/mo
Mortgage: 5.2% fixed 30yrs.
Insurance: $83/mo ( does this seem high to anyone familiar with Indy? )
Taxes: $179/mo
PITI: $924/mo
Expenses:
Vacancies (8.3%): $108/mo
Management (8%): $95/mo
Maintenance: $50/mo
Total expenses: $253/mo
Cash flow: 123
ROI: 8.4%
Thanks for your feedback!