Second look at numbers for one of my first deals

[Krisleigh Hoermann]

Hi everyone! Analyzing one of my first deals and would love a second set of eyes. I'm a bit and hold, value add investor. What are your thoughts?

It's a building on the main street in a suburb with a ton of foot and car traffic. The retail/multi-use building currently has two tenants (one has been there for a decade) and one additional vacant space. Current tenants just resigned new five-year leases with $300 monthly increase each year. Cap rate for the area and type of building is between 6-8.

Monthly gross income (total): $5,500

Purchase price: $724,900

Taxes: $9,441

Insurance: $5,199

No PM

Vacancy: 5% $275

Maintenance: 10% $550

NOI: $59,976

25% down, amortized over 20 years at 6.5% (being conservative, although think I'll come in under this)

Cash flow: $2,103.39

What am I missing or miscalculating?