PROPERTY #2 - Analysis campaign

[Charles S.]

Property #2

2-unit Property in Queens, NY

Each unit is a 2br/1ba

Anticipated gross rents: $3.6k/mo

Operating expenses (per month):

- Vacancy: $180

- Repairs/Maintenance: $70

- Taxes: $295

- Insurance: $135

- Property Management: $180 (did this at 5% of gross rents because I can manage the property myself but I’d like to set aside a portion in case it makes sense to transition to management).

-CapX: $180

List Price: $400k

Desired Purchase Price: $360k

Downpayment: $72k

Anticipated Rehab: $10k

Closing Costs: $2,880

30 yr loan @ 7% ( the middle ground between FHA and hard money)

Total Cash out of pocket: $84,880

Annual CF (before taxes): $7,127.15

ROI: 8.40%

So the insurance, repairs, closing costs, and rehab costs are all estimates.I tried to get as close to actuals as possible though.

Please let me know what you guys think.I’m open to all advice and criticism.

Thanks BP!