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Updated about 7 years ago,

Account Closed
  • Rental Property Investor
  • Orlando, FL
51
Votes |
138
Posts

Potential First MFH Property

Account Closed
  • Rental Property Investor
  • Orlando, FL
Posted

Hi BP Community! This my first post. 

I'm looking at my first potential investment property. It's a duplex in a C class neighborhood.

Below are the expenses:

  • Purchase price: $94,000 (conventional financing 25% down w/ 5.375% interest rate)
  • Total Rent: $1,250 (both units are identical 2/1)
  • Taxes: $75
  • Insurance: $8.33
  • Vacancy: $125.00 (10%)
  • Repairs: $63.50 (5%)
  • CapEx: $63.50 (5%)
  • Prop. Mgmt: $125.00 (10%)
  • Tenant Placement: $52.08

Below are the income values:

  • NOI: $3,237.64
  • Monthly Cashflow: $269.80
  • CoC: 11.70%
  • How does it compare against the 2% Rule: 1.33%

The property has a new roof, new windows, new A/C in both units and seems move-in ready. It's about 80 minutes from my primary residence. 

What are your thoughts on this property? Is there something else I should be considering? Also, I'm a bit concerned with finding tenants in this area. I checked the local police stats site and this neighborhood has very low reported crime.

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