Duplex in north Florida

[Derek Hedgespeth]

Hey Guys,

I am in the process of acquiring a duplex in north Florida. I am not a pro subscriber yet but I was able to use the calculator for free. I have a couple of questions. First, the purchase price is 150k with around 38k down. It has a well with city sewer and the renters are responsible for electricity. The garbage pickup is figured in with yearly taxes. I forecast that payment, taxes, insurance will amount to around 800 a month while collecting 1400 in rent. Is it safe to assume a lower capital expenditure because it has a new well, tile floors throughout, and a metal roof? I put 5% each for repairs and capital expenditures and according to the calculator, it should flow just over 500 a month. 

Secondly, do you guys put your cash flow in a separate account for all of your properties? Is it easier for tax purposes, and then if a repair needs to be made pull it out of that account? Thank you for taking the time to read my post!

[Bjorn Ahlblad]

@Derek Hedgespeth I keep separate bank accounts for personal and rentals and separate bank accounts and CC for some different properties. My apartment building that has its own account and CC then I have duplexes that that are kept as a group again separate account and CC. It makes accounting and tax time a lot easier. All expenditures are made from property accounts they were opened with money for reserves that can be pulled out anytime as they now have more than adequate funds in them. When you are running the numbers at this time you may want to go with 15-20% vacancy for the next 12 months and no rent increases until well into 2021. All the best!