Duplex Deal in Greater Denver

[Sam Rust]

I'm analyzing a duplex deal in the the northern Denver Metro and want an outside opinion. 

Asking price of $365,000.00

Units were both completely remodeled in 2017, new electrical/plumbing/furnace/AC/roof/floors

Currently rented for a total of $2800 per month (I have verified the leases)

I figured the rates with 20% down, taxes and insurance included, and a lower maintenance budget due to the pristine condition.

I come up with a cap rate of roughly 8%, free cash flow of just over $11k per annum, and a CoCRR of 15%. 

This looks to me like an obvious winner, especially in these market conditions where duplex's are hard to come by. Am I missing anything?

Thanks in advance! 

[Justin R.]

Hey Sam thanks for posting, its always fun to analyze deals and see where we differ. I would personally assume a 50 percent factor in your operating expenses because 1. Im guessing as I don't know your real numbers 2. This is a multifamily so your probably paying some utilities and landscaping at a minimum 3. to be safe.

Simple math places your $2800 monthly gross at $1400 a month net prior to debt service. I think your overvaluing your investment and gonna shorthand yourself as your mortgage is gonna be just above that number.

Im not telling you this is a bad investment. Just be conservative with your numbers, and know your plan.