Duplex Analysis - All Lights are Green!

[Jonathan Napper]

I am about to make an offer on this Duplex and would appreciate if you guys could double check my logic and point out anything I may have missed. I have my financing lined up. Both Units are leased and agreements have been verified. I have $5,000 dedicated repair fund set aside - until cash flow can match. 

2 Unit Duplex - $450 per unit.

AP $39,000

Offer $35,000

20% Down ($7,000)

Finance $28,000 30 YR @ 4% = $134 PM

GSI - $10,800

Property Manager - ($1,080)

Taxes - ($703)

Insurance - ($600)

Total Operating Expenses - ($2,383)

NOI - $8,417

Debt Service - ($1,604)

Cash Flow Before Taxes - $6,813 ($499 pm)

LTV 80%

Cash Flow from Initial Investment 97%

ROI on Assets 19%

Cap Rate 24%

*I can capture $1,300 in depreciation per year*

THANK YOU