Buy and Hold Analysis (First Time, Help?)

[Ryan Milne]

This is my first attempt (other than daily practice) at running actual numbers for a buy and hold rental property.

The listing read:

"Nice triplex with good cash flow for sale by retiring landlord! This property has been well maintained and sellers are motivated!"

Other Information:

Built in 1993

Listed for 222 days

7 Bedrooms and 3 Baths (No information on how that is broken up)

2826 sqft

So I did some numbers on it and tried to be as conservative as I could to see if this is even worth calling on.

Purchase: 125,000
Cash To Close: 20,000
Monthly Rent: 1,200 (I understand this is a guess especially not know the actual configuration of the triplex, so I went low with 400 a door. Rentometer said 528 for 1B1B, and 590 for 2B1B )

Prop Tax: 125
Ins: 80
Mortgage: 483
HOA: 0
PM: 120
Vacancy: 10% 120
Repairs: 5% 60
TOTAL: 988

Income - Expenses = Cash Flow -> 212

CAP Rate = 6.8%
Cash on Cash = 12.72

If possible could someone talk me through any glaring mistakes I could have made not to the point of making an offer but just to the tune of, is this even worth a call?

[Nick C.]

How much is it listed for? 222 days is a long time if the sellers are motivated. If they're retiring landlords perhaps they have rent rolls, it would be good to ask for that to get more accurate rent numbers, as well as bed/bath configurations. 

It'd probably worth calling to get some more accurate numbers to work with.