My First Analysis: Duplex in Mpls

[Eric Bate]

Hey Guys!

This is my first time posting an analysis on here, so please let me know if I'm on the right track.  It's for a duplex that I plan to live in, but in my calculations I'm renting every unit (so, as if I've moved out already).  Should I instead only calculate for the unit I plan to rent out?

Asking Price: $159,500 (=$31,900 @20% downpayment)

Total Rent/mo (est. according to Craigslist and Rentometer): $2,000

--

Principal + Interest (@20% down, 20yr fixed, 3.54%) = $743/mo

Property Tax = $213/mo

Insurance = $45/mo

Vacancy+Maintenance+Management (I'm guessing 25% of rent) = $500

Total Expenses = $1501

--

Cap Rate = (2,000rent - $500vmm) x 12mo / $159,500 = 11.3%

CoC = (2,000rent - $1501expenses) x 12mo / $31,900 = 18.8%

So, how am I doing?

[Logan Turner]

Looks pretty good. A few suggestions.
Total rent = Gross rental income.
You take your gross rental income and minus your operating expenses and you get your NOI (net operating income).
This will allow you to figure out cap rate for the property.

Also, who pays water, sewage, trash, and utilities? Often times that is the landlord for duplexes and up.

If this is going to be a live in for yourself, recalculate doing a 30 year loan, at 5 percent down. And calculate for both when you live there and when you move out.

I would use 30 percent total for: vacancy, repairs, management. Maybe even throw in 5 percent additional for capital expenditures.

You also did put in any dollars towards repairs. Is the property ready to go now as is?