This property is available now! I love this supplier. They have some of the best rehab jobs I’ve ever seen. I even own a property from these guys.
Location: Atlanta, GA. Built In: 2006
Purchase price: $122,222 (not a foreclosure, normal sale)
Previous sale price: $222,500!
Property info: 4 bedroom, 3 bathroom, 1386 square feet, Basement!
Monthly rent collected: $1100
Property taxes: $224.42
Property management fees: $110
Monthly expenses (conservatively estimated)
Vacancy (7%): $77
Repairs (5%): $55
Total Monthly Expenses- $508.50
Net Income = Income – Expenses = $591.50 ($723.50 with no vacancy or repairs)
Cap Rate =
annual net income (non-inclusive of mortgage payment) / purchase price = 5.8%
Cash-on-cash return =
Depends on your leveraging.
Are you thinking the cap rate is lower than what you are interested in? Check out one of Ali’s articles from BiggerPockets that hits this exact topic!