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Updated almost 6 years ago,
Is this a good deal? Looking for guidance on forecasting expenses
Hey all,
I'm definitely in the new camp. I would like to house hack, I found a duplex that's a 1/1 for the first unit, and a 3/1 for the second (room/bathroom.) Below are the number's I've come up with. Honestly I'm not sure how to evaluate operating expenses without a %. I have never purchased a home so I'm not sure how much some of these things would cost. Things that I've added in the 56%~ include: Cap expenses, property management, garbage, water. Is 56 too high?
Could the numbers work on this unit? I've added the address below, maybe someone can shed some light on what I'm missing, and what I can learn from this. Thank you for taking a look
Purchase Price: $ 230,000
Amount Financed:- $ 184,000 80% LTV
Down Payment:= $ 46,000
Purchase Costs: + $ 6,900
Rehab Costs: + $ 5,000
Total Cash Needed: = $ 57,900
Gross Rent: $ 2,200
Vacancy: - $ 220 10% of Rent
Operating Income: = $ 1,980
Operating Expenses: - $ 1,100 55.6% of Income
Net Operating Income: = $ 880 $ 440 Per Unit
Loan Payments:- $ 988
Cash Flow: = -$ 108 -$ 54 Per Unit
Post-Tax Cash Flow: -$ 108 -$ 54 Per Unit
6330 28th St N, Saint Petersburg, FL 33702
Really thank you for your time, and helping me make an entrance in this world!