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Updated about 3 years ago on . Most recent reply
Help with reviewing my deal
Hello Guys,
can you help with reviewing deal please?
2 units - 1 bd, 1 bath; 2.5bd 1 bath
| 4009-4011 Ivanhoe Ave,Norwood, OH 45212 | |
| Price | 219000 |
| Downpayment 25% | 54750 |
| Closing costs (3%) | 6570 |
| Fix | 10000 |
| Total cash needed | 71320 |
| Principal (4.375%). 30 y | 9840 |
| Prop management (7-9%) | 3820 |
| Insurance | 1448 |
| Taxes (1.81%) | 3963.9 |
| Utils (Electricity, Gas, Water) | 1080 |
| Maintenance (5%) | 1260 |
| Vacancy (5%) | 1260 |
| Rent Annual | 25200 |
| Cap Rate (%) | 11.5 |
| Operating income: | 2528.1 |
Most Popular Reply
Several suggestions:
1. Change Property Mgmt to 10%. If you every find a place charging less than 8%, avoid it. Also, at 10% you're looking at $2520, not $3820.
2. 5% is the absolute minimum for Maintenance. Unless it's in great shape and you don't anticipate anything, adjust to at least 7%
3. This chart is missing Capital Expenditures. CapEx should be similar to Maintenance; put that at 7% as well.
My figures result in $1560.1 of positive cashflow (Operating Income). That comes to $65/door. Are you happy with that? The general BP rule is no less than $100/door and some won't go below $150/door.