First Duplex** What do you Guys Think???

[Rob Anderson]

A little history. This will not be my first Investment Property but it will be my first Multi Family. Place is in pretty bad shape inside. Unkept by current Renters and will need hard refresh when they leave. Renters are long term. A unit has lived there for 3 years and is month to month but has no intentions of moving as of right now. B unit is Sec 8 and has lived in the unit for 10yrs and has no intentions of leaving. Bones are good. Roof is good. Siding is not appealing but is decent. Checked both Tenants background and all looked good.Property is 30Min away from the town I live in. OK on to the numbers.

Asking Price: $59990

Est: Repairs:$15000 Not Immediate(Post Current Tenants)

ARV:$89000

Taxes: $2399

Sewage: $35

Garbage: $35

Purchase Price- $50000

Out of Pocket- $9000(Down + Closing&Misc)

Amount Financed- $42500

NOI= 14400 (gross rents)*.88(Gross Income Adj. For Vacancy)= 12672- 2399(taxes)- 420(garbage)- 420(sewage)- 600(insurance) 1500(Maintenance & Repairs) = 7333

NOI= $7333.00

Cash Flow= NOI(7333) - Debt Services(3828)AM15yrs=3504

Yearly ROI= 14.6% (9000down+15000rehab)/3504(cashflow) Factored rehab cost into ROI to get a true number. Even though these cost may be deferred for years to come.

Cap Rate= 7333(noi)/65000 (purchase price+Est Repairs)= 11.3%

This is my first time sitting down and really crunching numbers and so im sure ive made mistakes. If you catch them please let me know.

So..... What do you think?