I have a conditional offer accepted on a tiny (~500sqft) SFH in Hamilton, 1/2km from downtown and GO Station. If anyone could give me feedback on my numbers, I`d really appreciate it. My usual spreadsheet isn`t set up for interest-only and I don`t know how to change it. Thank you!!!
Purchase price $80000
Financing 100% on HELOC, variable rate currently at 3.25%
MONTHLY OPERATING INCOME:
Rent = $750 plus utilities
Vacancy (7%) = $52.50
--------> Total operating income = $697.50
MONTHLY OPERATING EXPENSES:
Property tax = $114.00
Repairs/maintenance (5%) = $37.50
Property management (5%) = $37.50
Water heater rental (estimate) = $19
--------> Total operating expenses = $208.50
Interest-only payments on HELOC = $216.67/month
-----------
INCOME $697.50 - EXPENSES $425.17 = NET CASH FLOW $272.33
Notes: I want to pay down principal too but have calculated using minimum payments. The house is empty and I don`t have rental history, if any. $750/mo is my estimate based on area. It`s tricky to estimate since most houses aren`t miniature!
Purchase price $80000
Financing 100% on HELOC, variable rate currently at 3.25%
MONTHLY OPERATING INCOME:
Rent = $750 plus utilities
Vacancy (7%) = $52.50
--------> Total operating income = $697.50
MONTHLY OPERATING EXPENSES:
Property tax = $114.00
Repairs/maintenance (5%) = $37.50
Property management (5%) = $37.50
Water heater rental (estimate) = $19
--------> Total operating expenses = $208.50
Interest-only payments on HELOC = $216.67/month
-----------
INCOME $697.50 - EXPENSES $425.17 = NET CASH FLOW $272.33
Notes: I want to pay down principal too but have calculated using minimum payments. The house is empty and I don`t have rental history, if any. $750/mo is my estimate based on area. It`s tricky to estimate since most houses aren`t miniature!