townhome in Santa Clara (SF bay area)

Palo Alto, CA · Member since 2014 · 104 posts · 14 votes

This is in SF bay area so 50% rule doesn't apply :-). Newbie here so looking at my first deal.

Price - 500K

Down 25% - 125K

Annual income - 33K

Annual expense (Craigslist) - 26K

(Annual interest - 15K

Tax - 5.5K

HOA, repairs etc - 4.8K)

Income = 7.7K

cash-on-cash = 5.6%

No property management fee needed since I am local. Also no vacancy factor. 30 year fixed at 4%. Insurance<1K. Prop tax - 1.1%.

Am I missing anything in my fundamentals?

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
11y
@Roy Mitle
sounds like a good deal .. in 3 to 5 years if things hold you will make probably 100k in equity and your COC will sky rocket
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David Affonso
Mountain View, CA · Member since 2015 · 30 posts · 8 votes
10y
@Roy Mitle I might be late to the game on this, but where are you finding 500k properties in Santa Clara County? Even Condo's seem to be slightly above that...
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