Updated almost 8 years ago on . Most recent reply
Duplex Cash Flow Analysis
Hey guys! I think I found a good candidate for my first investment property, but I wanted some feedback and what you think of my numbers.
The property is a duplex where each unit is a 1BR/1BA. The total monthly rental income is $1,230 ($585 + $645).
I'm told the roof will need to be replaced in 3 - 5 years and the deck will need to be replaced within 2 years. The property seems like it's in good shape otherwise. Also, the property is in an okay neighborhood.
Values with squigglies are estimated.
Asking Price: $94,500
Closing Costs: ~$2,500
Rehab: ~$500
Down Payment: 20% ($18,900)
Prepaid taxes, insurance, and interest: ~$1,000 (not sure how to estimate this so this is just a guess)
Initial Investment: $22,900
Mortgage Remainder: $75,600
Mortgage Interest Rate: ~4.5%
Mortgage Period: 30 years
Monthly Payment: $383.05
Monthly Costs
Property Taxes: $167
Insurance: $50
Utilities: $0
Lawn Care/Snow Removal: ~$50
CapEx: $100
Vacancy (5%): $61.50
Repairs (5%): $61.50
Management (10%): $123
Total: $996.05
Total Monthly Rent: $1,230
Cash on Cash ROI: 12.3%
Do my assumptions seem reasonable?