Closing costs 4,650.00
Rehab costs 7,000.00 for roof kitchen and flooring
5% interest rate
Monthly rental income 1,400.00
Monthly taxes 420.00
4.4% Cash-on-cash ROI
8.6% total ROI
155.00 cash flow
Good or bad deal?
Have you factored in insurance and repairs and maintenance? If you have tenants that stay for 1 year at a time and then you need to; repaint, clean and re-rent; any profits you made during the year will be spent between not collecting rent for a month and the make ready.
@Charles Carillo thanks for the response. Yes I factored in maintenance and repairs.
The deal looks poor to me, but could you provide a more comprehensive list of expenses? It appears you may not be factoring some things in. Please let us know how the property was appreciating before the pandemic in that area.