Duplex analysis Columbia SC... am I forgetting anything?

[Jonathan Perez]

2 beds 1 bath both sides

fully and currently rented for $640

new roof, good condition inside and out

1512 sq feet

Purchase price $120k

rents ($640 a unit) total $1280

I am using FHA loan and the details are

3.5% down

3.75% interest rate

30 year fixed

So, now this is what I've got on y spreadsheet. Please let me know if I'm missing anything or if I should reevaluate.

Monthly

Rental Income - $ 1280

Expenses

Mortgage (according to calculator including taxes and insurance, $700) I'll round up - $800

ALL UTILITIES will be the tenants responsibility.

Trash included in taxes ($250/year) - $20/month

I called the tax office and this is what I got for taxes. Of course taxes vary but right now this is what we've got.

$472(occupied)/ year = $40/month

$1770 (unoccupied)/ year = $150/month

Lawn - $50

PM 10% - $130

Cap Ex 10% - $130

Net Cash Flow   -      $150/month                           <<---- Is this good? 

[John Leavelle]

@Jonathan Perez

Are you planning on house hacking?  If not, your down payment and interest rate are incorrect. You will need a 20% down payment and probably an interest rate over 4%.  If you are house hacking then you need to cut your rental income in half.

Also you did not include Vacancy or repair/maintenance expenses in your analysis. Those two items alone would probably negate your projected Cash Flow (using your current numbers).

Obviously if you did put a bigger down payment, then, your mortgage payments would be less.

As far as your question of "Is this good ?" - $150 per month ($75 unit) Cash Flow.  For me that would be no.  My goal is a minimum of $100 per unit a purchase and $200 after Rehab and stabilized.

Is that the list price or your offer price? Is that the current market rent rates or are they low?

Hope this helps.  :)