Analyzing a Deal: How do these numbers sound?

Question

Hey friends, I'm fairly new to real estate (still waiting to pull the trigger) and am trying to get the knack for quickly identifying if a property's numbers would make it a good investment. My thought was that this property could potentially be both a great investment or "house hacking" property. I'd appreciate any input or advice you can provide? How do these numbers sound? Anything I've missed/underestimated?

Units: 4-plex

Rent Est:  $2700 ($675 x 4 units)

List Price: $165,000

20% Downpayment: $33,000

Mortgage Amount: $132,000

Mortgage Payment: $670 (30 yr @ 4.5%) (P = $175, I = $495)

Taxes: $435

Utilities: $200 (water/pest/garbage)

Insurance: $150

Repairs: $135 (5%)

CapEx: $135 (5%)

Vacancy: $270 (10%)

Management: $270 (10% - if went that route)

_________________________________________

Projected Cashflow: $435

Thanks for commenting!

Ramon Jenkins · Answer

Okay

keep us posted

Kevin Castaneda · Answer

Thanks for the responses!

@Steve Vaughan, I don't know yet why the owner is selling.

@Jenkins Ramon, Thanks for the Repairs and CapEx sugggestions.  Taxes, Utilities, and Insurance were all monthly values in my initial calculation. The property looks like it's being sold by a private seller. Immediate renovations is a great question - something I had in mind to ask as well. It could require them as there are very few pictures, but I'd need to view the property to determine that.

Ramon Jenkins · Answer

Closing cost ?

Appraisal cost?

Inspection cost?

Seller might be willing to carry 5 – 10 % note.

example only : 7% seller 2nd with 4 year term at 6 percent

First, I would suggest checking with your lender regarding potential Seller 2nd note.

( approval is need )

Ramon Jenkins · Answer

Immediate renovations ?

Ramon Jenkins · Answer

Anyway to have tenants pay towards utilities?

Ownership is a private seller or REO for this property?

Do you need to pay for any Texas pest control fees? ( termites )

Ramon Jenkins · Answer

Repairs: $135 (5%)

CapEx: $135 (5%)

I would suggest changed to 7 % - 9%

Ramon Jenkins · Answer

Monthly or yearly fees?

Taxes: $435

Utilities: $200 (water/pest/garbage)

Insurance: $150 <-

Steve Vaughan · Answer

Sorry- don't know what happened.  Trying to say the rent/price looks good (earning much better than 1% per month) and your expense numbers appear to be in the ballpark.  I'd pull the trigger all things being equal.  I like to shoot for about 92% of asking.  Don't suppose you know why they are selling?

Steve Vaughan · Answer

Hi @Kevin Castaneda.  First impression is a good property.  Therent