The first really good deal I've found... I think!

[Joshua Wilson]

Hey guys!  Like most folks in this sub-forum, I'm hoping I can leverage the experience of you guys!  I've grabbed a screen shot of the BP rental calculator, and using whatever information I could find on the listing, and through the broker, this feels good.  it's a cash only deal(seller preference) on a tri-plex.  I've attached the screen shot of the numbers.  Additionally, using my own calculator provided by a broker friend of mine, I feel good.  

The rental income is based on all three units being rented, currently only 2 of the 3 are rented.  There is an estimated $400 less coming in currently.  According to the listing broker, there are no outstanding major repairs or tax liabilities on the property.  This is what I think is considered a "B" neighborhood.  Here are the two analyses:

Initial Investment
Purchase Price	$89,000.00
Closing Costs	$2,225.00
Renovation Costs(allegedly turn key)	$3,000.00
Total Investment Costs	$94,225.00
Financing Costs
Down Payment (%)	20.00%
Down Payment ($)	$17,800.00
Mortgage Balance	$71,200.00
Annual Interest Rate	4.00%
Loan Term (months)	360
Total Invested Capital	$23,025.00
Fixed Monthly Operating Expenses
P&I	$339.92
Financing Charges	$0.00
Administration Fees	$12.50
Property Taxes	$197.08
Homeowners Insurance	$111.86
HOA Fees	$0.00
Fixed Monthly Total Costs	$661.36
Variable Monthly Operating Expenses
Property Management	$157.50
Advertisements/Referrals	$65.63
Vacancy & Collection Losses	$131.25
Capital Expenditures Replacement Fund	$50.00
General Maintenance Fund	$50.00
Temporary Utilities	$10.00
Pest Control (Optional)	$0.00
Lawn Care (Optional)	$0.00
Total Variable Expenses	$464.38
Total Monthly Expenses	$1,125.74
Annual Operating Expenses	$13,508.86
Operating Income
Monthly Market Rent	$1,575.00
Annual Gross Revenue	$18,900.00
Monthly Profit (or Loss)	$449.26
Annual Net Profit (or Loss)	$5,391.14

I present to you such a thorough analysis in the attempt to make sure I'm not making any glaring mistakes! I got a recommendation from "The book on flipping houses" which I thought was pretty good...

If you've made it this far, and you are an active investor interested in this deal, I would love to partner with you. I'll completely hand the deal to you, in exchange for you carrying me through your entire process and $3200 (~20% of the estimated profits from the first three years). I get to learn a TON, you only have a little extra work to keepme in the loop, and you get a deal at less than a wholesaler would charge.