Our 10th Property/Unit

So we've reached that milestone of 10 properties/units (all SFR's).  We started this journey back in April of 2010 with the purchase of our first property on seller financing.  It was 10% down and we got 6.5% from the bank 6 months later and paid off the seller note.  Today, Property 10 is 5% down and 5.5% interest.  We've come a long way in 5 years.  10 properties, 2 states, and a LOT of learning.

Our 10th property is our best performing one by far.  The numbers are really insane.  Below is what we're looking at.:
-- Area: OK.  Not great, but not bad either
-- Purchase Price: $37,000
-- Down Payment: 5%
-- Property Management: 10% fee monthly
-- Rent: $750/month (You are reading that correctly).
-- Taxes: $900/year
-- Insurance: $300/year
-- Vacancy Rate: 0% (It's already rented upon purchase)
-- Money put into it: $0 (Upon inspection there is nothing for us to do).


Here are the results from my analysis spreadsheet:
Cash on Cash Return: 170.15%
Debt Coverage Ratio: 2.378
Vacancy Breakeven: 44.43%
Operating Expense Ratio: 23.33%
BreakEven Ratio: 55.57%

Capitalization Rate: 18.65%
Gross Rent Multiplier: 4.111
Net Income Multiplier: 5.362
LTV Ratio: 95.00%
Monthly Rent to Value %: 2.03%

Cash Flow: $331.20/month
5-year IRR (using 2% appreciation): 175%
10-year IRR (using 2% appreciation): 172%

Present Value: $11,678
Net Present Value: $9,328
Profitability Index: 4.97

Pretty crazy stuff huh?  We've never seen numbers this high.  And yes, we are only $2k to get $330/month in return.  100% of our investment back in just over 6 months.  Of course these numbers don't include unexpected expenses, but since it's already rented and we don't need to do any maintenance up front, we'll just take them as it comes.

I'll put into perspective.  One of our houses we bought for $95k.  It cash flows just under $300/month.  This house is a little more than a third of that price and it cash flows BETTER.  Again, I'm still in shock but hey, maybe we are pretty good at this real estate thing!