Help Newbie Analyze this Property?

[Eric DeVito]

Hi all, this is a two-family home I am interested in. I will be going to see it tomorrow with a realtor just to take a look at it. It is a short sale. I will be using this for buy and hold purposes. Home was Built in 2001.

MLS# 1093182

Asking Price: $229,000

Projected Purchase Price: $220,000 (This was used for this report in rental calculator)

Down Payment: 20% = $44,000

Amortized Over: 30 years

Loan Interest Rate: 3.80%

Monthly P&I: $820..08

Monthly Income: $2,200 (This is from total of 2 units)

Monthly Expenses: $1,750.50

NOI: $15,235.00

Monthly Cashflow: $449..50

Pro Forma Cap Rate: 6.54% (No Idea what this is)

Purchase Cap Rate: 6.93%   (No idea what this is)

CoC ROI: 9.46%

Total Operating Expenses: $930.42

Mortgage Expenses:    $820.08

Vacancy: $220

CapEx: $110

Insurace: $50

Property Taxes: $340.42

Repairs: $110

Water: $100 (Guessed here, not sure if I pay it or not)

Sewer/Gas/Electric/HOA: I put ZERO for all. (Not sure of this is accurate)

-So this is pretty much everything, not sure if I am missing anything or if I did anything wrong. I tried using the 70% rule as well, but I think I am doing that wrong, I will go try again and play around with the numbers. Any tips/advice or changes I should would be very helpful. Still quite new to this.

[Jonathan Wilks]

I didn't see any accounting for property management.  I personally always calculate it even if i will self-manage. It allows me an exit strategy to eventually not be hands on.