The asking price for this weeks property is $202,000. We went ahead and based the analysis off the asking price because the property is new to the market this week. The purchase price of $202,000, with a generous $5,000 toward fix-up costs, and a 25% down payment, will result in the buyer needing an initial investment of approximately $56,005. These assumptions, combined with monthly expenses will result in a before tax cash flow of $2,565 per month or $30,780 per year. The cap rate for this property is approximately 12.7% and the gross rent multiplier is 6.23. This property has lower than average total operating expenses at 16.39% resulting in a 27.3% cash on cash return of initial investment, and over a 16% yield!

(The values expressed are based on estimates and assumptions)

This property nestled right in the middle of Santa Maria, has huge potential. Located in beautiful Santa Barbara County this home will attract a number of potential renters, not only because of the beautiful valley it lays in but also due to its growing business sector. The most attractive attribute of this property is that it has a very promising cash flow each month signaling a high cash on cash return at 27.3%, with 25% down.