– Numbers –
Purchase Price: $20,000
Est. Rent: $600/mo
Taxes: $584
– Monthly Income & Expenses –
Est. Rent – $600/mo
Taxes – $49/mo
Insurance – $50/mo
Management Fee – $60/mo
Vacancy / Maintenance – $36/mo
Net Cash Flow = $405 x 12 (Months) = $4,860 Yearly Net Income
$3,000 (Estimated Rehab) + $20,000 (Purchase Price) = $23,000 (All in)
$4,860 (Yearly Net Income) / $23,000 (All in) = 21% COC Return