12 CAP duplex- Colorado springs 1900 a month gross rent

[Joseph Graeve]

I have a duplex for sale for $173,000. It has 3 bedroom 1 bath upstairs and 2 bedroom 1 bath downstairs. Downstairs has a separate entrance but does not yet have a variance for being zoned duplex (not hard to get). The house has a new roof and all new plumbing, new water heater, and comes with a new furnace not yet installed. The upstairs is fully renovated and is turnkey. the downstairs would need around 4-5k to finish. here are the numbers.

Conventional mortgage method

Purchase $173,000

20% down- $34,600. Interest rate-5.25%, Loan term-30 years

Monthly payment(Principal, interest, taxes, insurance)- $1050

Rental expenses

Maintenance(8% because all major maintenance is new.ex-roof)-$152

Vacancy (8%) -$152

Prop management (8%)- $152

Total monthly expenses -$1506

Total monthly rent- $1900 (top-$1100, bottom finished-$800)

Monthly PROFIT- $394

CASH ON CASH- 12.25%-First year, 

Current ARV 190,000k- 

You can see my spreadsheet for this calculation but assuming 3% inflation, selling in 5 years with 8% in closing costs and commissions, you would make $60k profit (equity pay down, appreciation, and rental income)

Closing will be October 30th

Let me know if you are interested. Call Joseph at 719-357-7497 or email at [email protected]