I am trying to practice analyzing out of state real estate investing and I was wondering if I can get your guys’ feedback! Starting out in Orland Florida.
Address: 717 W Kaley St Orlando, FL 32805
• -I looked into the crime rate, which seems pretty high online, so I am most likely going to shy away from Orlando, but practice doesn’t hurt
• -I looked on craigslist and Zesimate and it looks like rent will go for about 1200-1500 for a 3bed, so I’m going to estimate 1200 to be conservative
• -This property is also listed for 70,000 – I want to estimate 20,000 for rehab costs ( I am still reading up more on estimating rehab costs) ,but for numbers sake, I will use this number for now.
Monthly Income: 1100
• -Repairs/ Maintenance – 50
• -Real Estate Taxes – 112.50 (1.2%)
• -Insurance – 30
• -Vacancy Costs – 83
• -Capital Expenditures – 100
• -Total Monthly Expenses: 375.83
Loan Amount: 72000 (with 20,000 rehab money)
• -30 Years @ 5% interest
Closing Costs: 4000
Total Initial Investment: 22000
Monthly Mortgage: 386.51
Cap Rate: 9.54%
Monthly Cash Flow: 329.32
After evaluating this, if this property was in a better neighborhood with less crime, would I be naive to pursue this property?
Am I missing anything? I’m from California, so do you think I should account for anything extra? (ie, do you think capex should be higher for more drastic weather change?)
Feel free to be as critical as possible, appreciate it!
Thanks in advanced!