First Time Investment - Help!!!

[Josh Huber]

Hello Everyone! 

I'm new to real estate investing, but have read my fair share of books and Bigger Pockets forums to prime myself for what's to come down the road. 

I've been searching through this sellers-market for a few months now, and I think I've finally found a multifamily worth investing into. It's a 5-unit all-brick apartment, built in the late 1980's, with recent interior updates. However, since this will be my first real estate investment, I'd like to see if anybody disagreed with my numbers or ROI. Any input is appreciated! Thanks in advance!

Note: I flipped the home I currently live in, and plan to use a HELOC for my 20% down payment. Therefore, I will have to pay for 100% of the house each month, rather than 80%.

Listing Price: $239,000

Purchase Price: $200,000

Down Payment: $40,000

Income Generated (100% occupancy):       $2,844.00 (In the process of being increased to $2,960 because of remodel)

Principle & Interest:

20% (HELOC): $227.00

   80%:                                                                                  $811.00

Insurance:                                                                           $125.00

Property Tax:                                                                      $229.00

Electric (Common Area):                                                   $60.00 (Based off previous electric bill)

Water (Entire Building):                                                     $115.00 (Based off previous water bill)

Trash:                                                                                   $110.00 (Based off owner's historical records)

Repairs (5% of Income):                                                    $142.20

CapEx (5% of Income): $142.20

Vacancy (8% - 1 month annually per unit):                     $227.52

Management (10%):                                                           $284.40

Lawn Care (Mowing & Snow Removal):                          $50.00

Monthly Income:                                             $320.68

JUDGE HARSHLY! Thanks Again! 

-Josh

[Brie Schmidt]

@Josh Huber - I don't know your area, and numbers are local, but overall I don't have any changes.  Just be aware that capex items cost the same regardless of the rent.  So the cost to replace a HWH is the same if the rents are $500/mo or $2000/mo -  so on my lower rent properties I use something like this to set my capex

Item	Cost	Useful Life	Yearly	Monthly
Roof	$5,000	25	$200.00	$16.67
Furnace	$2,500	20	$125.00	$10.42
Flooring	$1,800	6	$300.00	$25.00
Plumbing	$6,000	30	$200.00	$16.67
Fixtures	$1,000	6	$166.67	$13.89
Water Heater	$700	20	$35.00	$2.92
Appliances	$1,000	8	$125.00	$10.42
Componants	$1,000	10	$100.00	$8.33
Structure	$10,000	30	$333.33	$27.78
Kitchen	$4,500	15	$300.00	$25.00
Window	$5,000	30	$166.67	$13.89
Paint	$2,500	6	$416.67	$34.72