$22K Sect 8 Acquisition/Deal Opinion

[Jonathan Napper]

Details. 1/1 680 Sqft - everything remodeled an update in 2009

Purchase Price $21,000

GSI - $6,000 (Same tenant for 4 years)

PM - $600 (May not even go this route, but just in case)

10% Vacancy - $600

Utilities - $240 (Owner pays sewer)

Repair Fund - $1620

Taxes - $600

Cashflow - $2340

Debt Service on Refi $1656 (6% @ 20 year)

NOI - $684

NET ROI - .16%

Strategy is I borrow $21K personal loan, 6 months later I cashout refi for 80%, my out of pocket dollars is $4,200. In theory I could do over and over and over, right? There are properties for less with equal or greater rents as well, which would make my numbers even better.

Thanks for your input!