VA LOAN (Owner Occupied) Duplex Analysis

[Shaka Farrier]

I'll keep this short and sweet. I am basing my numbers as if I were renting out both sides. I am rounding my mortgage costs up for easy calculation and my owner expenses (percentages) are pretty conservative 

Purchase Price: $215,000

Gross Rents: $2,400 ($1,200 per unit)

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-Mortgage Costs-

Principle: $1000

Interest: 3.5% ( I may do a rate & term refi for a 3.2% interest rate)

Taxes: $210

Insurance: $140 (Lowest quote thus far)

Appox.Total: $1350/month

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-Owner Expenses-

Utilities: $0/Minimal (water and electric separate)

Prop. Management: $240 (10%)

Cap Ex: $240 (10%) (roof,water heaters, electric heater, hvacs are pretty new)

Vacancy: $120 (5%)

Lawn Upkeep: $120 (5%)

Repairs: $120 (5%)

Approx Total: $840

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-Total Expenses/Profit Margin-

Income     $2,400

Mortgage: $1,350

Operation: $840

Profit:        $210

Deal or No deal? 

Am I missing anything?

[Iman Yu]

@Shaka Farrier the mention thing has a trick to it! It took me forever to get it working. First of all, the browser matters. Chrome tends to work better than IE. 

Then, most importantly, to create a mention that triggers an alert to the other user, you need to type @ and then their last name.  Once you type 3 letters out, the name will appear at the bottom and you can select it. I typed '@far' to get your name popped up.

Oh just to add a little bit of my .2 to what we are talking about here...the 50% rule indicates that the 50% of your total monthly rent should cover your total estimated monthly expenses. The expenses here should be tax, insurance and everything else except your mortgage payment. 

Then to calculate NOI, you take net income - total expenses.

When you have the NOI number, then you can take NOI - your mortgage payment to get your estimated monthly cash flow number.

Try it out :-)