Help analyzing a buy and hold deal
Hi there,
I'm looking at condo as a buy-and-hold investment, but I cannot get the numbers to work, no matter how I cut it. So I'm wondering if I'm missing something, or the deal is actually just not worth it. If anyone is interested in going over these numbers and giving me their thoughts, I'd appreciate it:
Purchase price: $190,000
Improvements: $10,000
Closing costs: Approximately $7k
Downpayment: $19k
Interest rate: not 100% sure, but probably around 4.5%
Mortgage length: 30 years
Rental income: $1500 p/m
Vacancy: 8%
Property Taxes: $4,500
Insurance: $750
Property Management: 7%
Maintenance and repairs: $2,000 per year
Advertising: $300 per year
Utilities: $200 per year
HOA: $329 p/m
With all that added up it leaves me $558 in the red every month, if my calculations are correct.
Anything else I'm missing, or do any of those numbers look off to you? And my other question is, under what circumstances would this deal make sense? Significantly lower purchase price? Higher rent?
Thanks in advance for your help!