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Updated almost 7 years ago,
Help analyzing a deal
Looking at this deal and was hoping to get some help from the BP community.
4 duplexes with rents totaling $5000. Some month to month, some 1 year leases.
So my numbers are:
Rent $5000
Expenses @10% $500
CapEx @10% $500
PM @10% $500
Vacancy @8% $400
Insurance $500
Taxes 6200/ year $520
Mortgage @5.25% $1573.78 with 380k purchase
That would put monthly cash flow at $506 and yearly at just over $6000
I would do individual leases for the properties assuming around 10k to close and 20% down. That would put me cash on cash of 14%.
To me the cash flow per number of units sounds low, that’s only a cash flow of $50 a unit. Any help here?