Good numbers or miscalculations???

[Gary Chapman]

I'm a new investor with one property in my portfolio so far. I want to invest in another property and so have been really crunching numbers and analyzing my last investment. Honestly, I'm feeling a bit confused about my calculations and either feel like I hit a jackpot or am missing a big piece of this puzzle. I'd like to share my numbers to see if I'm calculating correctly or not. Property is a duplex. 

Purchase price $236,000

Downpayment $70,000

Renovations $70,000

Monthly Rent $3600

Other income $300

Total Expenses $13,350 (taxes, insurance, utilities, maintenance)

So if I'm not missing anything I'm seeing a cash flow of $19,410 which would be 800/door a month. Everything I'm reading says 200/door is good, what am I missing?

[Bruce Woodruff]

You need to use either yearly or monthly numbers, not both, you're confusing yourself. But even adding in a mortgage (166k @ 6% for 30 years = $1000 mo) the numbers still aren't bad.

I would triple check your expenses, both monthly and for your renovations. This is where most people screw up. Do you have a solid proposal/estimate from a Contractor or are you guessing at the $70k?

And yes, you need management fees, vacancy rates, CapEx savings, etc....

If it were really that good of a deal, it would already have been snatched up most likely...