Analysis of SFR foreclosure

[Justin Sandall]

Hi guys, 

We've found a 3 bed/2 bath, 3 car garage, finished basement, nice yard with sprinkler system and well in a very desirable school district. It has been foreclosed on and just listed for sale at $120,000. I am using this as my purchase price as I don't think there is much room to get more of a discount. Comps in the area run $125,000 -  150,000. 

Revenues Monthly (Year 1)

Rental Income   1,200 (14,400)

Vacancy/Loss Rate  5.0% (5.0%)

Vacancy/Loss Value  (60) (720)

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Gross Income   1,140 (13,680)

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Expenses Monthly (Year 1)

Property Taxes Annual  1,158 (1,158)

Insurance Annual   755 (755)

Maintenance & Repairs Annual   684 (684)

Utilities Annual   0 (0)

Advertising Annual    150 (150)

Administrative Annual   600 (600)

Variable Cost PM (% Income)   0% (0)

Fixed Cost PM Annual    0 (0)

Other 1 Annual      100 (100)

Other 2 Monthly     0 (0)

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Total Expenses    3,447

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Expenses as % of Gross Income    28.94%

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Net Operating Income (NOI) 10,233

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Cash Flow

NOI (Cash Available) 853 (10,233)

Mortgage      479 (5,752)

Total Cash Flow   373 (4,481)

Cash ROI    16.60%

Equity Accrued   1,583

Total Return    6,064

Total ROI   22.46%

Cash Flow / Mortgage Ratio   178%

Loan to Value (LTV) 80%

Rent to Value (RTV) 0.95%

Capitalization Rate 8.5%

I can't for the life of me figure out how to link my spreadsheets I've got on my computer to these posts. 

Thanks for your time.