Help me with my first deal

[Joe Ellis]

Hello all, I am currently looking at a deal that looks like it could be the one to get me started. I wanted to throw the numbers out there to see if you all had any advice or if I was missing something. It’s a duplex, electric is separate but gas and water are shared. Purchase Price: 71,000 Annual rent: 18,600 Annual insurance: 1,200(est.) Taxes: 2,883 Garbage: 290 Vacancy: 1,860(10%) Maintenance: 1,860(10%) Management: 1,116(6%) 775 placement fee (50% one months rent) Capex: 930(5%) Total: 10,914 Annual mortgage: 3,453.60 18,600-14,367.60=4,232.40 cash flow Unfortunately management is a must since it is long distance. I’m thinking I will have to bill the tenants for water/sewer/gas after I get the bills. Also kicking around putting electric heat in the upper unit to eliminate the need to back charge for gas. Any observations/input would be appreciated. How does it look to you?

[Andrew Kerr]

@Joe Ellis - it looks like the start of a deal. Put it in the Bp rental calculator then share that here. 

How is the area? B or C?

Have you already interviewed property managers?

Any upfront or expected large capital expenses in the first year?