Deal analysis on first property

[Joe Ellis]

Hello all,

I am currently looking at my first deal and wanted to throw the numbers out there to make sure I'm in the ballpark.   It is a duplex, electric is separate but water and gas are not.

Purchase price: 71,000

Annual Rent:18,600

EXPENSES

Vacancy:1,860(10%)

Maint:1,860(10%)

Managment:1116(6%)

    750(placement fee 50% of rent)

Capex:930(5%)

Insurance:1200(est.)

Taxes:2,883

Garbage:290

Total:10,889

Annual Mort:3,453.60

18,600-14,342.60=4,257.40 cashflow

Seems like it could work, i am thinking i will have to bill the tenants for gas/water/sewer after I get the bill.  I was also kicking around doing electric baseboard in the upper unit to eliminate the need to backcharge the gas use.  Any input or observations would be appreciated.  This is somewhat long distance, so management is necessary.

Keep on keepin on.

[Joe Ellis]

@Dustin Verley Sorry, it is 6% monthly and the 50% placement fee is a one time fee per tenant.  This could be a benefit or a burden depending on turnover i guess.