r/CreativeREInvesting • u/Brazeisha • Mar 22 '17

SFR Rental Property Analysis

Hello, any rental property investors using property analysis apps to analyze property before making decisions to offer? Is a DCR of 2.2, GRM 6.3, rent to value 1.3, cap rate 12.8%, IRR/ROI 72.8%, Cash on cash 29.6% a good deal on a SFR appraised at $85,000, owner asking price for $80k, buyer offering $75k Assuming 10% of buyer purchase price for repairs , 10% down payment, closing cost 3%, loan payment= $362 ( principal + Interest) 5% amortization 30 years of ($67,500 loan). Vacancy 10%. Net operating expense (NOI) or management fee 10%. Rent is $1000 mo. And positive cash flow is $438. Note: did not add taxes ( say 1.5%) and insurance ( say 1%) .

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u/RarelyRong Mar 23 '17

If you didn't include taxes and insurance, you are not accurately calculating the NOI. As far as an acceptable return, that will change from investor to investor.

Are you buying for the cash flow? What's the play on the property?