Please Evalute This Deal -SFR Rental
Loan Amount $50,000 (includes purchase/repairs)
Repaired Value $77,000 Appraised
My interest rate is 6% over 20 years
P/I $359.00 Monthly Rent will be $700.00
Tax $129.00
Insurance $33.00
I have been learning about cap rates and the annual loan constant and from the math the give me I get a cap rate of .09%. From what I read this is supposed to be good. ???? But when I do it the old fashioned way by adding 45% for expenses plus P/I then I come up a loss.
Thank you in advance
I am considering a lease option or land contract vs renting. Not sure yet
Brandon Reffett