The property consists of a 1,300 square foot, 5 bedroom, 3 bathroom, single family home on a 5,001 square foot lot. Price per square foot at asking price is $135! Approximate market rate rents at $2,250, based off a $450/room rate which was used in this analysis. This results in an annual gross income of $27,000 a year, minus a vacancy factor of 5% resulting in an effective gross income of $25,650.

The asking price for this weeks property is $175,000. We went ahead and based the analysis off the asking price due to the short period of time it has been on the market. The purchase price of $175,000, 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 $49,188. These assumptions, combined with monthly expenses will result in a before tax cash flow of $2,138 per month or $25,650 per year. The cap rate for this property is approximately 12.1% and the gross rent multiplier is 6.48. This property has lower than average total operating expenses at 16.91% resulting in a 24.9% cash on cash return of initial investment, and over a 15.4% yield!

(The values expressed are based on estimates and assumptions)

This property nestled in the Norther quadrant of downtown Santa Maria, has huge potential. Located in beautiful Santa Barbara County this home's location 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 24.9%, with 25% down.