Opinions on this buy and hold cash purchase in Atlanta, GA

[Robbie A.]

Hey everyone,

I'm starting to get sweaty palms just thinking about typing this out as it would be my first property and it's all cash (would love anyone's opinion on financing with private money would be better or not... Probably a stupid question). 

The home is located in the Hammond Park area and I've attached the BP Rental Property Calculator's results below but here's the main numbers:

Purchase Price: $51,500

Repairs/Rehab: $33,000

Closing: $1200

Total Project Cost (cash): $85,700

ARV: $130,000

Projected Monthly Income: $995

Monthly Expenses Total: $357.87

-Taxes: $9.17
- Vacancy (6%): $59.70
- CapEx (4%): $39.80
- Insurance(estimate): $90
- Repairs (6%): $59.70

Monthly Cash Flow Profit of $637.13

Thanks so much! See below for the BP calculator output.

[Brent Coombs]

@Robbie A., so basically, an 8-9% return before tax, and a forced 35% equity gain?

If the ARV number is REAL, this one looks like an excellent candidate for "delayed financing", which would allow you to pull out ALL your cash again, and buy another similar deal for FREE!

ie. your borrowings FULLY paid for by your tenants. That's "BRRRR" success! All the best...