@Adam Wallen The numbers look interesting on the surface, but there are a few things I'd adjust. I believe your vacancy is a bit low at just 5%, especially for a single family. I'd be closer to 10-12% for vacancy on this property. Repairs and CapEx aren't bad, but I'd estimate a bit higher on a $100k house. Closer to 17-18%.
Thanks for the reply @Robert Leonard ! You're probably right on the both parts. For vacancy, the rate is VERY low in my area, but it never hurts to protect for a few addtl percentage points. I bumped vacancy to 8% and also bumped repairs/CapEx to 17% total. This would still give me a $277 cash flow and ~13% CoC return, if I paid the list price.
@Adam Wallen Those numbers aren't awful - I personally don't like 13% CoCROI, I'd like to be closer to 20%. However, I recognize that is very difficult in today's market, especially on SFR's.
The biggest thing to remember when using percentages to estimate costs for repairs/capex is that many costs are almost "fixed". They're not truly fixed, but they don't fluctuate much. @Brandon Turner talks about this on the BP podcast from time to time. The cost to fix a roof on a $100k property isn't significantly less than it is on a $300k property. However, on the $100k property, you'd need to allocate a SIGNIFICANTLY higher percentage towards repairs and capex than you would on the $300k property to be prepared for the same cost repair.
@Robert Leonard Solid points!! I very much appreciate your input. I'm getting my finances in order while analyzing as many properties as I can. Looking to make sure that my first investment property is a GREAT deal, not just a good one. I will keep your thoughts in mind as I continue searching!
@Adam Wallen I've found it useful to set daily goals for myself. I personally try to analyze AT LEAST 3 deals every single day. Best of luck on your search!