Analyzing my 1st deal, am I being too conservative?

[Account Closed]

First post!  I am analyzing my first property in Louisville, KY. It is a triplex.

Here are the numbers I am getting. It looks like CoC of just 4%, but am I missing something?

The numbers are the "actuals" (per sellers agent), but the maintenance/CapEx(10%), vacancy(5%) are estimates.

The property is in an up and coming area that is revitalizing. The building has already been updated.

Am I being too conservative on these? It doesn’t feel like I am.

Price	175000
Gross rent	26100
Insurance	3156
Taxes	2535.96
CapEx + Maint (10%)	2610
Vacantcy (5%)	1305
Utils	6300
Mgmt	1827
Yearly Expenses	17733.96
Yearly Net	8366.04
CoC Return (no debt)	0.0478059428571429
Debt service	11700
CoC + Debt	-0.095256
Rent per door	-92.61

[Erik Hitzelberger]

@Account Closed if you are using ‘actuals’, you aren’t being conservative. That being said, your insurance number seems a bit high. 

Regardless, I want to address your last few lines. The CoC (no debt) appears to be a Cap Rate. You can do better than this here in Louisville.

Since the above is a based on a pure cash purchase, I’m not sure why you have debt service.  If you are getting a loan, the cash on cash calculation should be based on your down payment not the purchase price. That being said, it absolutely should not be negative. It’s too easy to find better deals.