First Deal Analysis (practice)

[Matthew Vedder]

Hi BP Community,

I just created my first practice deal analysis and thought I would share with you all in hopes of getting some feedback. My goal is to find fourplexes in B (ideally) or C neighborhoods that cash flow at least $200 per door with financing. This property fell just short at $191.40 per door. 

This is an actual fourplex that is currently pending sale (not to me). Each unit is a 730 square foot one bedroom. I found it on realtor.com here. It is in the College hill neighborhood in Cincinnati, which appears to be an up and coming B/C neighborhood according to this post. I am assuming that it went for asking price and that I would be able to get a similar deal in this market if I had the down payment and other upfront cash ready to go. I made a ton of assumptions here, the biggest of which is probably the rent. Cincinnati investors please let me know how far off I am on any of these figures or if I am missing anything! 

Thank you!

Matthew 

Asking price	$235,000.00
Purchase price	$235,000.00
Value	$252,546.00	Based on Quantarium value
Down payment	$47,000.00
Rehab/repair costs	$5,000.00	No known issues
Closing costs	$11,750.00	5 % of purchase
After rehab value	$252,546.00
Equity	$59,546.00
Investment	$63,750.00
Rent	$3,000.00
Unit 1	$750.00
Unit 2	$750.00
Unit 3	$750.00
Unit 4	$750.00
Monthly Expenses	$2,234.40
Mortgage	$844.00		Terms	30 yr fixed @ 3.5%
Management %	10.00%		Management $	300
Maintenance & repairs %	10.00%		Maintenance & repairs $	300
Capital Expenditures %	10.00%		Capital Expenditures $	300
Vacancy %	3.58%		Vacancy $	107.4
Insurance	$110.00
Water and Sewer	$100.00
Taxes	$173.00
Cash Flow	$765.60
Cash Flow Per Door	$191.40
Yearly Profit	$9,187.20
Cash On Cash Return	14.41%