Investment Overview

This affordable 3-bedroom rental offers a low entry price and consistent rental demand, making it a solid long-term cash-flow property. With conservative expense assumptions and standard financing terms, it provides reliable income, strong tenant stability, and long-term equity growth.

Investment Summary

Purchase Price: $99,000
Monthly Rent: $990
Annual Gross Rent: $11,880
Vacancy (5%): –$594
Effective Gross Income: $11,286

Rental Analysis

Gross Annual Rent: $11,880
Effective Gross Income (after 5% vacancy): $11,286

This rent level is aligned with local tenant affordability, keeping occupancy high and reducing turnover. The property works well for a value-focused buy-and-hold investor.

Operating Expenses

Property Management (10%): $1,188
Property Taxes (estimated): $800
Insurance (estimated): $1,100
Maintenance (8% of rent): $950

Total Operating Expenses: $4,038
Net Operating Income (NOI): $7,248

Financing

(Assuming standard investor financing)

Down Payment (20%): $19,800
Loan Amount: $79,200
Interest Rate: 7%
Term: 30 years

Monthly Mortgage (P&I): ~$527
Annual Debt Service: ~$6,324

Cash Flow & Returns

Net Operating Income: $7,248
Annual Debt Service: –$6,324

Cash Flow Before Taxes: $924 per year
(Approximately $77/month)

Cash-on-Cash Return:
$924 ÷ $19,800 = ~4.6%

Depreciation Benefit:
Depreciable Basis (80%): $79,200
Annual Depreciation: ~$2,880