Is my Rental Analysis right?
The property is https://www.zillow.com/homedetails/2554-River-Rdg-Conroe-TX-77385/28719224_zpid/?
Here is my analysis:
Rental Income: $1,500
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Expenses:
Taxes: $168
Insurance: $35
Water/Sewer: $0 (Tenant Pays)
Garbage: $0 (Tenant Pays)
Eletric: $0 (Tenant Pays)
Gas: $0 (Tenant Pays)
Hoa: $67
Vacancy Rate: $150 ( I do not know what the actual percentage is, I just used 10% because that is what you put for one rental property in spring and I just multiplied it to the rent $1,500)
Repairs: $100 (Home has been recently renovated and I doubt there is anything that needs any repairs)
CapEX: $100 ( I don't really know how to calculate this! The only thing I know is that the house has been recently renovated and looks like from the photos it doesn't need any major repairs, I could be wrong but if you could show me how to calculate CapEX that would be great.)
Mortgage: $591 ( Buying Price: $95,000 and I put 20 % down so $19,000 )
Flood Insurance: $60 (This neighborhood always floods when it rains so I am a little nervous If I were to invest in this property, but I am just practicing my analysis. Also I am not too sure if this is the actual premium. I looked up average flood rate insurance yearly and it was $700)
Total Expenses: $1,351
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Cash Flow:
Rent: $1,500
- Expenses: $1,351
$150 cash flow
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Cash on Cash Return:
DP: $19,000
Closing: $2,000 ( I am not too sure about this neither, what is the average percentage for closing cost? Is it 1%?)
Rehab: $2000( I would probably just fix the garage door it looks kind of beat up and then do some landscaping, I am just overexaggerating rehab)
$2,628 ( Cash Flow Yearly ) % $23,000 ( Total Cash Invested ) = 11 % Cash on Cash Return