Deal Analysis For Roanoke VA

[Steve N.]

This is my first deal I'm putting together. I would appreciate any comments.

3 BR 1700sqft, SFR, Nice neighborhood, house is in very good condition, tenant ready, no deferred maintenance evident.

$142,000 asking price (owner indicated he is flexible)

$1200 rental income (I assume 95% occupancy so 13,800/yr)

$614 - 1st Loan - 126,000 30 yrs @ 5.13%

$300 - 2nd Loan - 20,000 Line of credit @ 3% - This help pay 20% down payment. This payment drops to zero over 15 years.

$210 - Operating Expenses (Insurance, land Taxes, Maintenance, etc)

$62 - estimated depreciation tax write off

$103 - estimated interest tax write off

$194 - estimated cash flow (after tax write-offs)

I'll be putting in about 15,600 of my cash into the deal for the down payment.

My metrics look like this

Cap rate 7.9%

Cash on Cash - 15%

I may be way off, but I think this is a good deal.