Property Analysis Help

[Lisa M.]

Hello All!!!

This is my first post after weeks of perusing the site and I've learned so much!

I wanted to get your thoughts on my property analysis. I am interested in putting an offer on a multifamily home near the University of Maryland but I just don't know if its a good deal. Here are my numbers. Total upfront cash is about 15k for this property. One 2 bd room and Two 1 bd rooms. Any feedback would be helpful!

Annnual Property Data
Operating Income	Monthly
Gross Scheduled Income	$3,700
Vacancy & Credit Loss @ 10%	$370
Effective Gross Income	$3,330
Estimated Other Income (Late Fees)	$-
Gross Operating Income	$3,330
Operating Expenses
Taxes	$433
Insurance (includes MIP)	$370
Water/Sewer	$150
Trash	$30
Property Management @10%	$-
Gas and Electricity	$-
Repairs @5%	$185
Landscaping	$50
Reserves @5% (10K already on hand)
Total Expenses	$1,218
Net Operating Income	$2,112
Debt Service (P&I)	$1,865
Cash flow (want is >$100 per door)	$247

[Russell Brazil]

Where is the property? If it is Takoma Park then it sounds like you are probably not aware of their rent control. Do you plan to live in the property? If not then your down payment is way too low and you would not have mortgage insurance. your vacancy rate is way too high.