New Investor Analyzing Properties (for practice!)

[Austin Walters]

So I have been doing an analysis on about 3 properties per day as mentioned by the great, famous, Brandon turner! I am really interested to get feed back from seasoned gamer's as to what their initial thoughts are on the deal. Candid response are great here, I'm mainly looking to improve my ability to quickly see and understand a deal. Please go easy on me as I'm new to the game just trying to learn!

With that, 

Deal Analysis 1: 

City: Oak Grove, MO

Type: Duplex, Option buy both sides or only 1 side

Price: 62-63k ea. REO (Guessing I could offer less here)

Bed/Baths: 2/2

After running an analysis (playing with a few numbers), this is what I came up with from an individual side. 

Home Value: 55k if bought @ 50k + 5k (minor repair)

Initial Investment: 20% down @ 11k  (4% interest rate)

Monthly Rents in area for 2-2: $700

I put myself in worst case scenario and assume 0% appreciation and 0% rent increase

Initial	Year 1	Year 2	Year 3	Year 4	Year 5	Net Total
Projected Cash Flow	$-28	$1341	$1296	$1251	$12070	$5031

this is based on selling @ year 5.

Cash on Cash (COC): 18.22%

Debt Coverage Ratio (DCR): 1.91%

Capitalization Rate (CAP): 8.77%