Calculating Operating Expenses on Multi

[Jeff D.]

Hi Folks, 

I'm looking to purchase my first 3/2 duplex for around $275k. I plan to occupy one of the sides for the first year and already have tenants for the other side who will pay $1300 per month (tenants will cover their own utilities). My side of the unit will be shared with two room mates who each pay $500 per month + share of utilities. Most of the big ticket CapEx items have been taken care of (roof, furnaces, AC units within last 5 years).

Question is, when calculating operating, CapX and debt servicing, am I looking at the numbers correctly? 

Here's what I've included for operating expenses: 

• Property Taxes (2.4% of Property Value in Austin, TX)
• Property Insurance (.5% of Property Value)
• Property Management (10% of gross per unit rent after year 1) 
• Utilities (less than $50/ month - split with room mates)
• Repairs (10% of monthly rents- should this be a percentage of property value or a percentage of rent). 

Outside of these items I'm planning to use an FHA with 3.5% down. This will require PMI, which I'm guessing with come with a .85% rate (is this based on credit or fixed at same rate for everyone?).

Finally, I plan to keep $5k in savings for CapEX. I'll add $1200/ year to this and keep saving. Is this enough? How do you guys calculate / keep money on hand for this type of stuff? 

Thanks in advance for your feedback.