Analysis of SFR foreclosure
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.