Rental Property Investor · Los Angeles, CA · Member since 2016 · 137 posts · 80 votes
8y
Looks about right your vacancy seems a little high but it’s not bad to be conservative. And your down is 20%? Usually for investment property it’s 25%. Otherwise pretty standard cast flowing deal
Valparaiso, IN · Member since 2018 · 4 posts · 1 vote
8y
Good evening Anthony.
I feel a bit more information is warranted to be able to provide reasonable feedback. Could you please tell us a little bit about the property? (how many beds and baths) What kind of value add opportunities are there with this property? Do you have exit strategies planned out?
I feel financial reports are incredibly important but, they are only as reliable as the information that we feed them.
As I review the the report the CapEx of $47.50 a month seems extremely low (in lies the issue of using a straight percentage). After 20 years of no expenses from the CapEx account you should have a total of $11,400 (Plus interest earned). Could you replace all of the wearable items in a house with $11,400? This would be a new roof (est. $5-8,000), new kitchen appliances (est. $2,000), washer dryer ($1,000), new paint, bathroom remodel, new flooring, and the list goes on. Under investing in CapEx could quickly turn a great deal into a financial nightmare.
I look forward to hearing more about this property!
Rental Property Investor · Detroit, MI · Member since 2018 · 17 posts · 5 votes
8y
I believe it depends on what you are looking for. From a cash flow perspective, the cash on cash return is not that high, you should shoot for 12%+. What makes this a bit different is the equity you have up front assuming that your valuation for the property after repair is accurate.
Rental Property Investor · Chesapeake, Virigina · Member since 2017 · 9 posts · 2 votes
8y
Hello Stephen,
Thank you for your feed back. A friend of mine purchased this home 2/1 about 2 years ago and is moving out of the area. He has completely rehabbed the home including kitchen, HVAC, bathroom, new porch as well as it coming fully furnished. Also, it is currently rented until Nov. and another tenant is scheduled to move in after.