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Updated over 5 years ago on . Most recent reply

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C Lundeen
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First time investor - Duplex

C Lundeen
Posted

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?

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