Updated over 7 years ago on . Most recent reply
Property will cashflow according to my numbers, but downpayment..
Hello all, I have been working with a realtor in Eastern NC and he has produced me with a property that I think I could cashflow right away. This is a townhome in a desirable part of town that was built in 2007. The best schools in the county are located here. Carpet throughout the main living areas, vinyl flooring in the kitchen and bathrooms, microwave, stove, refrigerator, dishwasher, fenced in patio, and fireplace. Tenant in place until 4/30/2018 at $925/month. Rather than bore you with all the details, here are the numbers I came up with:
$88,000 PURCHASE PRICE (They are asking 93k and the city values it at 96k)
| Purchase Closing Costs | $2,000.00 |
| Estimated Repairs | $500.00 |
| Total Project Cost | $90,500.00 |
| After Repair Value | $95,000.00 |
| Down Payment | $17,600.00 |
| Loan Amount | $70,400.00 |
| Loan Points | $0.00 |
| Amortized Over | 30 years |
| Loan Interest Rate | 4.250% |
| Monthly P&I | $346.33 |
| Total Cash Needed | $20,100.00 |
| Vacancy: | $30.00 |
| HOA: | $86.00 |
| Repairs: | $50.00 |
| Insurance: | $23.00 |
| Property Taxes: | $85.00 |
$1,000.00 MONTHLY INCOME (Property is currently being rented til May for $925 a month, but avg. is 1,300 there.)
$620.33 MONTHLY EXPENSES
$379.67 MONTHLY CASHFLOW
9.17% PRO FORMA CAP
$8,712.00 NOI
$20,100.00 TOTAL CASH NEEDED
22.67% CASH ON CASH ROI
9.90%PURCHASE CAP RATE
According to the numbers I think it'd be a great investment if I could find a way to get the $20,100 I need. Open to all advice. Thanks.