Updated almost 11 years ago on . Most recent reply
SFR analysis
Hey guys,
Was wondering what you think of this analysis:
SFR - 3 bed, 1.5 bath, 1200 sq ft, detached garage & carport, large fenced yard, all hardwood floors. Will need minimal cosmetic touch-ups before listing for rent.
| List Price | $93,899 | |||
| Fair Market Value | $94,723 | |||
| Discount (%,$) | 15.00% | $14,208 | ||
| Purchase Price (Max Offer Price) | $80,000 | $80,515 | ||
| Percent Down | 20% | |||
| Down Payment Amount | $16,000 | |||
| Amount Financed | $64,000 | |||
| Interest Rate | 4.38% | |||
| Length of Mortgage (Years) | 30 | |||
| Payment | Monthly | Annual | ||
| Monthly Mortgage Payment | $319.54 | $3,834.51 | ||
| Rental Income | Monthly | Annual | ||
| Unit A | $800.00 | $9,600.00 | Zestimate = $902/mo, rentometer.com average $900/mo | |
| Unit B | $- | $- | ||
| Unit C | $- | $- | ||
| Unit D | $- | $- | ||
| Gross Rental Income | $800.00 | $9,600.00 | ||
| Vacancy Rate | 5% | |||
| Net Rental Income | $760.00 | $9,120.00 | ||
| Expenses | Monthly | Annual | ||
| Property Management Fees | $- | $- | 0.0% | |
| Leasing Costs | $33.33 | $400.00 | 50% of 1 mo rent | |
| Maintenance Reserve | $38.00 | $456.00 | 5% of NRI | |
| Utilities | $- | $- | ||
| PropertyTaxes | $96.45 | $1,157.40 | 2% of FMV | |
| Insurance | $62.92 | $755.00 | 0.5% of FMV | |
| Other (HOA fees, Lawn Care, Trash, etc) | $20.83 | $250.00 | ||
| Total Expenses | $251.53 | $3,018.40 | ||
| $3,498 | ||||
| Net Operating Income | $508.47 | $6,101.60 | ||
| Mortgage Payment | $319.54 | $3,834.51 | ||
| Total Cash In (Down payment + Repairs) | $16,000.00 | |||
| Net Cash Flow | $188.92 | $2,267.09 | ||
| Investment Analysis | ||||
| Annual Dept Pay Down | $1,100.00 | |||
| Annual Cash Flow | $2,267.09 | |||
| Annual Appreciation | $4,167.81 | |||
| Total Return | $7,534.90 | |||
| Rate of Return on Cash Flow (Cash-on-Cash) | 14% | |||
| Rate of Return on Debt Pay Down | 7% | |||
| Rate of Return on Appreciation | 26% | |||
| Rate of Return on Total | 47% | |||
| Loan to Value (LTV) | 68% | |||
| Rent to Value (RTV) | 0.80% | |||
| Capitalization Rate | 6.4% |
So with a very conservative rent estimate and (what I feel are) reasonable expense estimates, we'd be cash flowing ~$200/month. We'll be able to rent fairly easy. The appreciation stuff is estimated fluff, we aren't banking on any of that at all.
Any thoughts?