Updated about 10 years ago on . Most recent reply
Need Some Input on this deal
I have a 3br 2ba 1582 LA I purchased for $59,900. I'm estimating the renovation to cost around $25,000 -$28,000. I received a appraisal on the ARV of $136,000. I have a banker that lends me 80% of aappraised value and it covers me purchasing the property and renovating it. The only out of pocket expense we have is the deposit and home inspection fee. I'm considering if I should rent it or flip. Below is a summary of the expenses and income. I normally only flip but I'm trying to start building a rental portfolio.
| CASHFLOW ANALYZER | |||||
| Rent per unit | $1,100.00 | Sales price | $85,000.00 | ||
| # of units | 1 | less | |||
| Annualized rental income | $13,200.00 | Down/Deposit | $824.50 | 1% | |
| less | percentage | Repairs | $- | ||
| Vacancy | $1,056.00 | 8% | Total Investment | $824.50 | |
| RE Taxes | $694.00 | Loan | $84,175.50 | ||
| Insurance | $1,174.00 | Terms | |||
| Management | $1,056.00 | 8% | 5.60% | Interest | |
| Maintenance | $660.00 | 5% | 30 | Amortization | |
| Utilities/HOA | $- | DEBT SERVICE | |||
| Reserves | $660.00 | 5% | Payment | $483.23 | per month |
| Operating Expenses | $5,300.00 | 44% | $5,798.81 | per year | |
| Net Operating Income | $7,900.00 | ||||
| less Annual Debt Service | $5,798.81 | DSCR | 1.362 | ||
| Cashflow | $2,101.19 | Cap rate | 9.3% | Monthly cashflow | $175.10 |
| CCR (%) | 254.84% |