Deal Or No Deal?

[Rick L.]

The property is a four family with some updated electrical and plumbing. The neighborhood is C rated area. I attempted to run a few quick numbers based off of statistical data and current rents. I would greatly appreciate your opinion.

Asking Price: $52,000

Purchase Price: $41,000

Gross Monthly Rent: $1800

Estimated Monthly NOI: $720 ($1800 x 40%)

P&I: -$220 (20yr term @ 5% with No down payment)

$100 Profit/unit: -$400

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Net Profit: +$100

Estimated Monthly Expenses: $1080 ($1800 x 60%)

Insurance -$150

Sewer -$60

Taxes -$50

Trash -$60

Water -$50

Lawn/Snow Care -$50

Property Management -$180 ($1800 x 10%)

Capital Improvements -$180 ($1800 x 10%)

Repairs/Maintenance -$270 ($1800 x 15%)

Vacancy - $216 ($1800 x 12%)

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Net Profit -$186

I'm not quite sure if If my percentages of expenses (Repairs/Maintainance, Vacancy, Capital Improvements) are correct since I detailed the utilities. With my current numbers, I'm not sure this property cash flows?