SFH First Offer Analysis - Philly

[Account Closed]

Hi all - I'm looking to make my first offer on a SFH in Philly. It's a B house in an A neighborhood. This will be a buy and hold investment although I am including sales expenses to get an idea of the full ROI.

Any feedback is appreciated!  

High Level Summary

Holding costs = 2 months mortgage payments

Comps

Income

Rental comps showing a range of 1500-1800+ / month.  I'm estimating ~1700 here.  

Expenses

Repairs

Returns

For a conservative estimate I've not included any anticipated appreciation.  Included a sales cost of 9k + 6% sales commission.

[Igor Messano]

Kwang Kim

I agree that for a buy and hold these numbers just do not look very promising. There are plenty of areas in Philly right now that will get you a much better return in that price range. Not only are you not even getting 1% on rent but < 200 per month in cash flow is weak specially given you are spending 50K out of pocket. With that CoC return you might as well put your money in a CD if looking purely at the rental income.

Also, where are you getting the 3K in closing costs from? Transfer taxes alone in Philly is 4.1% which is already double your closing costs. This is not counting lending fees, title search and insurance, deed, appraisals, etc.