Condo analysis in Orem, Utah
So I (a newbie) checked out today a condo listed on the MLS (#1321480) and I want to see if I'm analyzing this correctly. Here are basics:
List price (assumed purchase price): $114,900 with 20%down on conventional loan at 5% and minimum monthly payments of $493.45.
Gross max rent (estimated): $1000/mo or $12000/yr with 5% vacancy rate.
Operating Expenses:
HOA fee: $1080/yr
Taxes: $609
Insurance (guess): $600/yr
Maintenance: $1500/yr
Property management (educated guess): $960/yr
TOTAL OP. EXPENSES: $4,749/YR
RRA: $200/yr and debt service at $5921.36
NET OP. EXPENSES: $6651
BTCF: $529.64
CAP: 5.79% (pretty bad!)
COCR: 1.96% (pathetic)
Debt/coverage ratio: 1.12
50% rule: ($221.36)
1% rule: ($149)
IRR: 43.7% (pretty good, right?)
To get good cap & COCR rates above 10% I need to buy this place for $60k, right? Did I miss anything? Do your numbers agree with mine? Thanks!!!