Deal Analysis on SFR Buy and Hold
Here is my scenario:
$37,500 purchase price
SFR - 4 bedroom 2 bathroom
$16000 Down payment and repairs.
DP $7500, CC $4500, Repairs $4000
Payment with Taxes and Insurance $286
Management = 10%
Repairs $50 monthly
Cap Ex $100
Vacancy 8% = $116
Rent $1450
$1450-145-286-100-50-116= $753 Cash flow monthly.
$753x12= $9036 NIO
Cash on Cash Return Estimated = $9036/$16000 = 56%
Most Popular Reply
I'm not sure if "$41,500 house" and "$1,450/month rent on an SFR" go together, but it depends on the location. Around me (Kansas City), I'd have to spend something north of $150K on a SFR and repairs to get those kinds of rents.
I'm also not sure that $4,000 in repairs on a $37,500 house would be enough, but you have better knowledge of the property's condition.