Duplex

[Brian Jones]

Need help with analysis paralysis. I'm looking into a duplex here are the numbers. Asking $160,000 2 1/1 Rent $975 each unit owner pays all utilities on budget billing plan at $2,940/year Tax/ins $2,340/year Would be putting 20% down What do you think?

[Kyle Penland]

So lets work this out...

758 Mortgage

440 is Tax and Insurance but not necessarily utilities

Then add in 10% Maintenance (you will have this) $198

10 % Vacancy (You will have this too) $198

10% Property Mgt (even if you don't use one figure this in...Its your time!) 198

So I just brought your cash flow down from 752 -592

Gives you 160 bucks a month in cash flow... You will CHEAT yourself if you don't figure these in...Is that worth your initial investment?  NOT worth mine.  Also that is not figuring if your tenants like to really use utilities!  When you have a vacancy, and you will... don't care how long they have been there you are in the RED.  How do you know the tenants are currently even paying their rent?

If I invest 32k into something I expect to make MUCH more than 160 bucks a month...I believe if my math is correct it will take you over 15 YEARS to get your money back??  NO WAY Jose...PM me for more details or call me for that matter...I can give you some insight.  If your HVAC goes Out!  and you need a replacement then your out.