Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated over 5 years ago on . Most recent reply
First time investor - Duplex
We are looking at a duplex as a rental investment, but do not know how to view the numbers crutched by BP calculator, whether the asking price is solid for investment.
List Price = $200K
Down Payment = $40K
Rent = $18,000 / yr ($700 + $800 per month)
Taxes = $2800 / yr
Water & Sewer = $1320 / yr
Insurance = $650 / yr
I entered a 5% vacancy
I did not load in maintenance expense or other costs like lawn care but if I did, I would assume 10%
Here are the numbers I got
Cash on Cash ROI = 8.18%
Gross Rent Multi = 11.11
Debt Coverage Ratio = 1.41
2% Rule = 0.74
Thoughts?