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Updated over 8 years ago,

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  • a
7
Votes |
22
Posts

Duplex looks like a steal, Am I missing something? First property

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  • a
Posted

Hello, This is my introduction post as well as my first Deal I'm thinking about buying. Basicly me and my wife are looking to househack using FHA and start generating cash flow to begin our real estate investing. I'm currently in colorado but we want to relocate to las vegas, and we found a property that shows great numbers using the BP rental property tool. We'd like to stay there and hosuehack for a year before moving on and keeping the property as a rental with property managment. Here's the numbers I cam up with.

I'm hoping for some advice on my estimates and if I'm missing anything big, Otherwise I want to call an agent and make an offer soon I think.  I estimated the rent based on rentometer.com, and guessed at a 8% capex even without any obvious repairs being neccessary.  These numbers are the cash flow assuming both units are rented, and 10% monthly property managment, for the first year however I'd be occupying one unit (the small one) and doing Managment.

Is this a really good deal? Am I way miss estimating rent? or Capex? or anything else? There asking 99K I ran these numbers assuming 90K

las vegas, nv

Monthly Income: 

$1,500.00

Monthly Expenses:

$1,242.95

Monthly Cash Flow:

$257.05

NOI

$8,600.00

Total Cash Needed

$6,150.00

Cash on Cash ROI

50.16%

Purchase Cap Rate

9.56%

Property Information

Purchase Price:

$90,000.00

Purchase Closing Costs:

$2,000.00

Estimated Repair Costs:

$1,000.00

Total Cost of Project:

$93,000.00

After Repair Value

$90,000.00

Property Description

Duplex, unit #1 3bed-1bath unit #2 2bed-1bath. No obvious repairs necessary

Down Payment:

$3,150.00

Loan Amount:

$86,850.00

Amortized Over:

30 years

Loan Interest Rate:

4.875%

Monthly P&I:

$459.62

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