Updated almost 13 years ago on . Most recent reply
How does this even make sense
http://www.realtor.com/realestateandhomes-detail/222-Grove-Ave_Des-Plaines_IL_60016_M85510-89913
Could this also be a supporting reason why CAP rate should NOT be your only metric in buying an investment property?
Purchase Price: $174,900
Mortgage: $838.89 with 20% down @ 6% and 5% closing
Cash Outlay: $43,725
-Income-
Rent: $1900/month (optimistically)
-Expenses-
Maintenance: $190/month
Vacancy: $190/month
Property Manager: $0 (self PMed)
Insurance: $115/month
Taxes: $510/month (ouch)
NOI: $16,860
CoC: 1.54%
CAP: 12.52%
Profit: $27.99/door/month
I would have to offer $130,000 on this property to make $200/door/month.