Properly done analysis ??

[Graham Armstrong]

Ive been doing property analysis daily now, just want to see if its being done right, and if you have anything to add, i would greatly appreciate it !

*Each home I am using a 20% down payment structure & 50% for expenses*

8 Queens st, Middleton. *** *** Triplex, $128,900
Rents $1700 . Mortgage $460 month . Expenses 50%
$10,200 ($1700 x 12 / 50% = $10,200)   /  $103,120 (80% of 128,900) = 9.8% Cap Rate
$10,200 / $ 25,780 (20% of 128,900)  =  39.5% Cash on Cash

$10,200  /  12  =  $850 (cash flow per month)  -  $460 (mortgage)  =  $390 cash flow or $4,680 annual cash flow.

[Zach Quick]

@Graham Armstrong Sure, judging by the 50% rule it seems to be okay. But I would get more familiar with what insurance, taxes, utilities are and then plug those in to an analysis so you have them down for sure(or at least within a close ballpark)

Then you can take it a step further and plug in what the area vacancy rate is for this particular type of property. Then plug in 10% of rents collected for management, 10% for maintenance and 10% for CapEx and you may be closer to an actual number.