So Ive just picked up my first deal. Not too exciting, a SFH I purchased for 78500 with 25% down on a conventional loan at 4.875%. Insurance is 980 and taxes around 1500 which makes my payment 543.24. I can get 1100 per month when the house fixed up and ready to rent.
I have several questions about how some costs figure into my net return on investment.
-My cash down was 19625 but closing costs added another 5k
-In addition to standard fixer upper stuff like painting I am going to tile the entire house for 4k (floors cannot be saved)
the house will need a roof in the next three years and should cost me a good 10k
So when i calcualte my roi, if i count the closing costs, tile (and other repairs for that matter) and roof when the time comes all as expenses, it looks like Im loosing my shirt. However if i can count these as cash invested then my return is acceptable.
I dont wanna fool myself about this property, how should i track this properly?