Follow Up to My First Deal

[Gregory Jimison]

A few days to a week ago I posted about my first real estate deal.  It is two 4 plexes, what I had originally thought the property to be (2 bedrooms) because of the listing actually turned out to be 1 bedroom with a large family room that could be "considered" a bedroom due to the use of french doors on the second floor, this would not work as well on the bottom units due to the fact that the entry way would walk through someones bedroom.  This has me reevaluating my numbers.  Any insight you all can provide I would greatly appreciate.  Heres the numbers:

100% bank financing (.25% origination fee, $550 appraisal per unit, 8% apr fixed or 5.25% variable.

$150,000 purchase price

Up to $40,000 construction loan

Up to 6 months "construction phase" with interest only payments

All utilities are separate except trash (muni requires bill to be in owners name and water/sewer)

When projecting Cash flow of assets I am getting 4% after taxes, ins, a yearly R&M of $3000, and projecting utilities to cost $9120 (is this too high? trash is only $20 a month and my water bill for my home located in the same city is $47 and sewage is $20.) All units do have washer/dryer hookups.

My annual cash flow before taxes with these projections is $8,443 is this about right?

BTW the CAP rate is 14%, again this okay?

I am calculating potential rental income as $500 a month.