[Calc Review] Help me analyze this deal

[Robert Gibbs]

Hey guys, can I get some feedback on this deal analysis? The deal is fully remodeled. The listing gave the average rent prices and I looked then up using the rent estimator. I also went on the higher side with the down payment and interest rate even though the interest rate still may be higher but I'm hoping someone will correct that. Thanks!

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*This link comes directly from our calculators, based on information input by the member who posted.

[Tim Herman]

@Robert Gibbs hard to analyze without more details. Is it a 500 sf sfh. or 10000 sf 8-plex. Each has a different capex and repair budget. I just looked up property tax for Columbus and it averages over 2%. You would be looking around $5400 per year in taxes. You have a $100 MISC FEE. No PM charge. 

[Robert Gibbs]

Quote from @Tim Herman:

@Robert Gibbs hard to analyze without more details. Is it a 500 sf sfh. or 10000 sf 8-plex. Each has a different capex and repair budget. I just looked up property tax for Columbus and it averages over 2%. You would be looking around $5400 per year in taxes. You have a $100 MISC FEE. No PM charge. 

 Hi Tim, thanks for the feedback. I adjusted the deal to reflect the 2% property tax. The 100 dollar misc fee was a safety expense in case I noticed the yard wasn’t being taken care of. I am going to be managing the property myself. The property is a 3 bed 1.5 bath duplex. 2112 sq ft. 

[Tim Herman]

@Robert Gibbs Did you get an insurance quote. That is only $35 per unit. Have you run  maintenance and capex budgets. Here is a simple maintenance budget. Cost of turnover, (not vacancy) + the number of repairs. I usually average 1 per year. Your vacancy is the equivalent of 1 turnover per 20 months. Using 20 months as the timeline you would have 1.5 repair calls. Mine average around $150. So $225. Can you repaint and clean each unit for $1500. Total cost is $1500+$225=$1750/20 months= $87.50 per month per unit. A capex budget is done the same way. Let's assume you have 2000 sf of flooring. My area it is $6 sf to replace. Go to your favorite flooring store and ask for the commercial warranty. Most will be 10 years or less. $12000 flooring cost /120 months lifespan=$100 per month for 1 item in a capex budget. You have $30 per month to pay for roof, appliances, hvac, hot water heater, bath and kitchen remodels, etc.  Your capex budget is probably half of what you need.