[Calc Review] Help me analyze this deal
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Hey BP!
I'm looking for feedback on this deal analysis (see link above) for a triplex in Cincinnati. The rent ratio is 1.94% ($1750/$90k) and the neighborhood is C to C-. Owner is responsible for water/sewer/trash and utilities for the 1BR unit. The 2BR and 3BR units pay their own gas and electric. I'm withholding 8% for vacancy, 9% for maintenance, 9% for Capex, and 10% for property management, totaling $630/mo. PITI is another $692/mo, owner paid utilities are $350/mo, leaving the total monthly cash flow at a mere $77/mo. I haven't even accounted for other costs like lawn care and snow removal. Clearly, from the numbers I'm using this would not be worth it. I feel like many people would kill for a property that had a 1.94% rent ratio which begs the question, how are you making money off properties like this?
I appreciate any and all feedback!