First deal help-analyzing the numbers

[Melissa Bunch]

https://www.biggerpockets.com/analysis/rentals/f2a4127b-7a0f-4827-aee4-fe7e96307582

I’m not sure if I even shared the report correctly, but I’m trying to analyze this first deal. Looks solid, but I wanted to be sure I’m not missing something?

[Tim Herman]

@Melissa Bunch interesting reading. Closing cost of 30k. I use 3% of purchase price.Insurance seems high, I use 50-60 per unit. Do you know what 3% vacancy means. Your tenants will stay an average of 33 1/3 months. I use 8% which is 1 vacancy per year. Capex of 2% is nonexistent. Floors have a 10 year life spa. My area it is $6 sf to replace with lvp. assume 1200 sf of flooring. 1200 sf * $6 sf= $7200/ 10 year life span /12 months in a year= $60 per month with one item. You will not be able to replace the roof 25 year life span, appliances and hot water heater 12 year life span, hvac 20 year life span, bath and kitchen remodel 20 year life span, etc. I use a minimum of 10%. Management will be 10-12%. Your expenses are 15% light.