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Updated over 9 years ago on . Most recent reply
Advice needed on a Duplex Rental in Houston
This is a duplex that I've been interested in and I would like to get your feedback on it.
It's not a duplex that I will be living in so it will be getting a 25% down non-owner occupied loan on this one. The load we got on that is a 30 year term @ 4.37%.
The asking price for this duplex is 119k but I think we can get it at 110k because it's been on the market for 60 plus days. Below is the spec on the duplex.
| Stories: | 1 |
| Year Built: | 1982 / Appraisal District |
| Building Sqft: | 1,512/ Appraisal District |
| Lotsize: | 6,617 Sqft/ Appraisal District |
Both units are currently rented. 1 unit @ 675 and 1 unit @ 650 (tenant has been in this unit for 10 years).
Here is my calculation:
NOI = gross income minus all expenses = $731
| Total Rental Income: | 1,325.00 |
| vacancy estimate: | (109.98) |
| gross income: | 1,215.03 |
| property tax: | (145.08) |
| Insurance: | (100.00) |
| CapEx and Repair: | (132.50) |
| PM Cost: | (106.00) |
| total expense: | (483.58) |
Monthly Cash Flow = NOI - Mortgage = $298
$1215- $433= $298
That's about $150 per unit with a pretty conservative calculation.
The neighborhood is in Stafford so it's close to decent but I think it's still a class C area.
What do you think?
What are some things to think about that's not on the cash flow analysis?