First Deal - Would love some help analyzing data - numbers below!

[Andrew Graham]

Hello BiggerPockets members! I am a new investor to the world and to the platform. I heard about real estate investing just a few weeks ago but I want to know so much more. Currently my one single goal is to find a duplex property in southwest Missouri near Springfield, fix the place up, live in one side and rent out the other half. Then a year or so later, refinance, rinse and repeat. 

However, I have no clue what the practical steps are to get me to my goal. I have gotten a realtor and have started looking at properties on Realtor.com and Zillow. I have analyzed a few properties and the numbers weren’t fantastic on the first few... But, I did find one that looks like a pretty good deal. I would love some insight and assistance from the BiggerPockets members to verify that my numbers are accurate and that I am not making a mistake in the calculations. Also some guidance in the steps to move forward with placing an offer and getting financing once I am sure of a good deal. 

Right now I am just trying to get the process down for how to find, analyze and make an offer on a deal, so feel free to scrutinize me in every way possible. Or take the deal for yourself if you think it’s good enough 😀 I just want to learn as much as possible. 

The property that I am analyzing is in Sparta, MO which is a small and semi-rural town about 20 min. southeast of Springfield, MO. which is a pretty nice city of 200,000 people. The property is a 4 bed 4 bath property with a large backyard lot and a 2 car garage for each of the units. Both units had the AC units replaced in 2020 and the roof was replaced in the last 5 years as well. Has brick front and is at the end of a culdesac. 

Rent in the area for a renovated 2 bed 2 bath unit is approximately $750. I believe that after renovations the units will both rent for $825-850 with the garages and the lot in the back. 

The numbers that I have projected, as shown in the analysis, are $125,000 purchase price; $25,000 for renovations; and an ARV of $200,000. On expenses I put 10% for R&M, 5% for vacancy, 5% for Cap Ex and 10% for Management Fees - Not sure if that is logical, I was kinda winging it on those projections.

Any assistance on the projections or how to better use the calculator for analysis would be greatly appreciated.

Thanks to all BiggerPockets Members,

Andrew Graham