Help evaluating 2 unit deal

[Wave Taylor]

Does this look like a good price/deal for a two unit bldg., probably in a c-class neighborhood?

5.5% estimated rate

$770 estimated monthly payment (includes taxes and HOI)

$25,000 Estimated down payment (20%) and closing costs

$83,200 Loan amount

$25K renovations

$74K purchase

[Russell Gronsky]

@Wave Taylor, what are the rents currently? What will the rents be once renovated? How long will it take to move tenants in once renovated? How long will renovations take to complete? Are there any other streams of income the property will produce (parking fees, coin operated laundry, etc)? Are the units individually metered for electricity and gas? Are there any common areas where you will be responsible for electricity or gas? Is there an HOA? Any landscaping you will be responsible for? What are the water, sewer and trash costs and will you pay those or will tenants pay for that? Will you need snow removal in the winter? If so, how much is that? How much will you set aside for CapEx each month? How much will you set aside for preventive maintenance and repairs each month? All of these are revenues and expenses you need to calculate into your analysis. Then you can see what your CoC, CAP rate and NOI are and that will help you determine if this is a good deal or not.