Attached is an analysis Exel Doc from BP for a property I'm looking at. It's in a Low-Income/Lower Middle Class neighborhood. Not a bad neighborhood, but not a "doors unlocked" area either. The average rent within a 5 block radius is $750-950 per month. Recently renovated. Vinyl floors, Laminate Countertops, aged tile bathrooms These numbers are assuming a no haggle purchase at listed price with 75% financing. [I can't quite get the spreadsheet to take into account additional financing amounts]. If I figured this right, the spread sheet is a little more finite with certain expenses accounted for like a CAPex account and no 40% or 50% rules applied. Conversely, at the 50% rule marker; $10,800 Gross Rent x .5 = $5,400. $5,400/$17,000 (Initial)= 31.7% ROI.
I'd appreciate the wisdom of an experienced person looking over this and validating, invalidating, or correcting me on where I may have gone askew.
Very Much Appreciated,