Need advice on single family deal analysis
Hi BP Community,
I am looking at a potential single family investment property that seems interesting but returns seem low with conventional financing (15% down for single family investment property) and wanted to get your thoughts on it as an investment deal:
Asking price 149K
Market Value - @ 190K
Taxes are $3,200 / year
Water/sewer - $600/year
It's currently rented at $1,600 / month
Tenants pay Electricity / gas
It could use some tlc inside - update kitchen cabinets, replace a few older windows - maybe @ 10K but as it stands the tenants seem happy enough with it and the rental income seems typical for that area so making the improvements to the kitchen would not bring in more rent perse. Here is the BP Rental Calculator report, would love to get your thoughts. The area has slow appreciation but there is some equity going into the deal. But cash flow of $46.45 and cap rate of 4.84% and cash on cash return of 1.45% doesn't seem great.
https://www.biggerpockets.com/calculators/shared/7136/e4c99347-cdaf-4fbf-9452-88b86b980aa4
Thank you for any input.