Updated over 12 years ago on . Most recent reply
Rental Property Numbers - Please Advice
Here is a rental townhome in NW suburbs I am looking at.
Size - 1200sqft
2 Bed 1.5 Bath
1 car Garage + 2 floors above it.
Age - 40 Years old
Hardwood Floors
Purchase Price $73,500
Loan Amount $58,800
Tax $283
HOA $182
Insurance $17
Mortgage (3.5%/15Yr) $415
Total Payment $897
Rent Value $1,200
TAX+HOA $465
Mortgage $415
Vacancy $100
Maintanance $50
Net Return $170
Rents could be 1250, but I want to keep it conservative at 1200.
Does these numbers look good. Please advice.
Size - 1200sqft
2 Bed 1.5 Bath
1 car Garage + 2 floors above it.
Age - 40 Years old
Hardwood Floors
Purchase Price $73,500
Loan Amount $58,800
Tax $283
HOA $182
Insurance $17
Mortgage (3.5%/15Yr) $415
Total Payment $897
Rent Value $1,200
TAX+HOA $465
Mortgage $415
Vacancy $100
Maintanance $50
Net Return $170
Rents could be 1250, but I want to keep it conservative at 1200.
Does these numbers look good. Please advice.
Most Popular Reply
Jon Holdman
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Jon Holdman#3 Real Estate Deal Analysis & Advice Contributor
#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
Rent = $1200.
Expenses, vacancy, capital = $600
P&I = $415
Cash flow = $185
But HOA's have a way of sucking more profit out of a deal than you might think.
You can earn some of that expense/vacancy/capital money if you do the PM job yourself. It concerns me that you end up with a lower cash flow number than me yet you've allowed nothing for property management. If you do decide to get a PM and your numbers are accurate, you're going to be cash flow negative.