Updated about 8 years ago on . Most recent reply
7 condo deal - 10.8% Cap - is this deal good enough??
7 Condo - (5 - two BD Unit and 2 - one BD Unit)
Purchase Price - $350k
Down- 30%
Loan- 245k
100% Occupied
Annual rent- $48,360
Expenses
| Property Taxes: | $248.00 | |
| Water: | $120.00 | |
| Garbage: | $100.00 | |
| Property Insurance: | $80.00 | |
| Maintenance: | $100.00 | |
| Total monthly Expense | $648.00 | |
| Expense yearly | $7,776.00 |
\Vacancy(5%) - $2418
Annual Mortgage Payment(12*1241) = $14892
Annual Property Management(6%) ~$ 2902
Total annual Expense($7776+2418+14892+2902) = $27,988
Annual Net cash flow = $48360 - $27,988 = $20,372
Return on Cash ~19%
Thanks
Garg
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Wayne Brooks
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Wayne Brooks#1 Foreclosures Contributor
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Not nearly enough money for maintenance, no turn over costs and no capex......this is not a 10% cap. And about one month vacancy/collection loss per unit every two years on $600/mo. rentals seems wishful.