Investment Analysis: 1415 Northgate Sq Reston, VA
On Thursday last week, my Meet Up Group and I viewed a couple bank owned properties. 1415 Northgate Sq in Reston, VA is a 3bd 2bth that was originally listed for $242,500 and has been reduced to $218,000. Other comparable 3bd 2bths sold this year went for $264k (August) and $280k (June).
The following is a quick investment analysis that I use to determine whether or not to an investment would be a good fit in my investment portfolio. Hopefully this can help you in your investment property search!
Monthly Rent/sqft in Northgate is $1.63. This apartment is 1,234 sqft. Estimated Monthly Rent = approx. $1,950 Monthly Condo Fee = $415 Annual Reston HOA = $675 --- $56.25/month Estimated repairs = $7,000 --- $583.33/month (for the first year) Assumptions: No financing, close price = $210k First Year estimated Cash flow Rent= $1,950 Expenses = $1,054.58 Monthly Profit = $895.42 Annual Profit = $10,745.04 Return on Equity/Cap Rate = 5.1% 2nd Year Estimated Cash flow Rent= $2,000 (2.5% increase) Expenses = $485.38 (no renovation cost, increase in Condo/HOA fee by 3%) Monthly Profit = $1,514.62 Annual Profit = $18,175.44 Return on Equity/Cap Rate = 8.7%