First deal - Analysis help? Buy-and-hold multi family

[Tara Piantanida-Kelly]

Hi All!

My husband and I just looked at two duplexes. We can buy them individually or as a package. Here are my calculations using the BP analysis tool if we buy them as a package:

Monthly Income: $2,795.00

Monthly Expenses: $2,222.31

Monthly Cash Flow: $572.69

Pro Forma Cap Rate: 10.36%

NOI: $13,983.00

Total Cash Needed: $41,250.00

Cash on Cash ROI: 16.66%

Purchase Cap Rate: 11.19%

Gross Rent Mult: 3.73

2% rule: 2.07

Debt coverage ratio: 1.97

Total monthly cashflow using the 50% rule: $804.94

Here's one of my many questions: I entered 10% of gross monthly rents as expenses for both CapEx and repairs. Of course, that affects the analysis pretty significantly. Am I using the wrong percentage? What do you normally use for these figures?

Thanks in advance for the advice!

Cheers~

Tara Piantanida-Kelly