2bd/1ba Duplex analysis in Largo Florida

[Joe Gutmann]

I hope everyone is having a great holiday weekend and enjoying their time with family. I am currently looking at Duplexes and SFR in the Largo to St. Pete area of Florida and seek advice on how accurate my analysis is and ways to improve it as I have not bought an investment property yet. The numbers for expenses are what I am using as a standard, I know I am off on insurance (I don't know how to estimate, but the email is sent to my insurance agent and it's Christmas so I don't expect an answer today) but I don't know what other numbers could use polishing. The rent in the analysis is what is posted on the MLS as what the current tenants are paying, this is not the listed price but it is the highest offering point that allows me to reach my minimum goal of 100$ a door, and it is not in a SFHAs (a/ae/v/ao zone). The link to the BP Rental Calc is below and will open a new tab.

2bd/1ba Largo Duplex Analysis

$160,000.00 purchase price

$3,000 closing costs

$40,000.00 downpayment 

30 year loan at 5.2% 

$658.93 monthly P&I

// 

Vacancy $126.00 (7%)

Repairs $90.00 (5%) 

CapEx $180.00 (10%)

Insurance $150.00 (8%) 

Management $162.00 (9%)

P&I $658.93 (37%) 

Property Taxes $221.08 (12%) 

Total $1,588.02 (88%) 

Rent as listed: $1800 - expenses  $1588.02 =  $211.98

Gross Rent Multiplier: 7.41 

Income-Expense Ratio (2% Rule): 1.10%

I expect I would be able to raise rents, at least to matching levels but I am ensuring the deal would pencil out before turnover and an increase (is this smart to do, or is it killing potential deals?) in rent. Any advice and pointers would be greatly appreciated!

[Nicolas Middleton]

Hi Joe,

I was curious why you had the Repairs & CapEx as two separate categories?

Your numbers show making about $100/door which seems to be what a lot of people aim for.  However, that is with the 25% down payment.  

Are you hoping to house hack, or is this purely an investment opportunity?

My wife and I would like to purchase a multi-family property to house hack in the St. Pete / Pinellas Park area in this next year.  Good deals are few and far between it seems.  I'll be curious to hear how this property works out for you!