This supplier is amazing. They are very much a mom-n-pop style shop and with a great reputation. They even offer a 12-month rental guarantee on your property when you purchase!
Location: Baytown (Houston), TX. Built In: 2003
Purchase price: $103,000 (not a foreclosure, normal sale)
Property info: 3 bedroom, 2 bathroom, 1584 square feet
Monthly rent collected: $1,250
Property taxes: $236
Property management fees: $113
Monthly expenses (conservatively estimated)
Vacancy (7%): $88
Repairs (5%): $63
Total Monthly Expenses- $629
Net Income = Income – Expenses = $622
Cap Rate =
annual net income (non-inclusive of mortgage payment) / purchase price = 7.24%
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!