Updated over 8 years ago on . Most recent reply
Katy Texas first property
We have been brought a possible property to buy from an agent/friend I spoke to about our interest in buying our first property. The home is 3 bed/2 bath, fully remodeled and basically move in ready. My agent/friend may also have tenants looking to move in around time we would close. Timing seems great but nervous to make sure first purchase is a good one. Rental calculator gives us about $240 cash flow per month based on purchase price of 180k (what agent thinks they will ask) and $1600 per month rent. Comps sent to me by agent make me think 170-175,000 closer to right price for house but rents might be lower than he thinks at about $1450-$1550.
We are pursuing this deal but would love some thoughts and encouragement from experienced investors.
Most Popular Reply
@Clark Dickenscheidt This place doesn't look awesome. Here are the numbers as I see them. Please correct anything and I'll readjust the numbers.
| Mortgage Rate | 5.00% |
| Length of Mortgage in years | 30 |
| Monthly Mortgage payment | $724.71 |
| Taxes | $ 180.25 |
| Sewer and Water (paid by tenant) | $ - |
| Trash (paid by tenant) | $ - |
| Heat/Utilities (paid by tenant) | $ - |
| HOA (paid by tenant) | $ - |
| Cap Ex and Ops | $ 200.00 |
| Insurance | $ 125.00 |
| Mgmt Fee | $ 170.00 |
| Vacancy | $ 136.00 |
| Total Expenses | $1,535.96 |
| Unit 1 | $ 1,700.00 |
| Total Revenue | $ 1,700.00 |
| Cashflow/month | $ 164.04 |
| Cashflow/year | $ 1,968.49 |
| Cash on Cash Return | 3.90% |