My first multifamily buy and hold- analysis and mistakes

[Tom Vic]

hello all,

I just fully rented my first multifamily property. It is a side by side ranch style duplex in a suburb of rochester ny. I closed on October 1st, 2015. It took my dad and I 8 months to rehab 2 apartments.( my first mistake that I will talk about later). That's with me working 2 jobs and my dad also working full time. The apartments needed new floors, painting, some new plumbing, counter tops, doors, trim etc. 1st apt was rented back from previous owner after closing for 2 months @ 710 which was negotiated with price of property. That same apt was rented out febuary 15th @ 900 and 2nd apt now June 1st. @ 1095

Here are my numbers: 

Purchase price: 117,000

Down payment: 31,036

Insurance :500

Repairs:6631

Inspection: 250

Carrying cost:

Gas/electric: 679.87

Water:57.19

Garbage: 216.23

Mortgage payments(-710 @ 2 months and 900 @ 3.5 months): 2170

Total cash in: 41,541. 

Monthly rents: APT 1 $900 & apt 2 @1095.

Total rent 1995

-30 garbage

-25 water

-100 insurance 

-120 repairs/ maintain

-100 vac

-970 mort/ taxes

Cash flow of $650 x 12= 7800. 7800/41541= 18.5% ROI

I plan on managing and lawn care on my own if I do end up outsourcing it the number would be: 

-199 management {10%}

-66 lawn care

Cash flow +385 x12= 4620 4620/41541 = 11.5 % ROI

So with self managing the ROI is great not so good if I outsource management

Let me kno what think of these numbers!

My biggest mistake was not outsourcing some work. I could of finished this a lot sooner and got a lot more rent and cut down on carrying cost to increase my ROI. I may of also over paid a tad for the property but it's definitely a learning experience. Any advice or thoughts would be appreciated