Pittsburgh area !! Please fill any gaps Help me analyze this deal

[David Harley]

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*This link comes directly from our calculators, based on information input by the member who posted.

[Brandon Sturgill]

@David Harley CapEX is not an operating expense...unfortunately the folks at BP never figured that out. This alone will change your figures...guess you can't change their calculator...Discovering CAP rate on a residential property is completely pointless. Residential properties are valuated on comparable sales. period...again, another flaw with this calculator. Cash-on-cash is your only metric here that may matter, and it's simply for comparing properties side-by-side and asking what the best use of your limited dollars is...Anyway,

Your closing costs will be closer to 2% of the purchase price: $5,800 (unless the seller is covering this...if so, good job)

Repair cost of $1,000 won't do anything...contractor fees will eat 50% of that...if you are renovating, you need to renovate to drive rents...$4k per unit will maybe do paint and carpet...a few fixtures. 

The roof may be fine...you just need a professional opinion. If it ain't broke, don't fix it...but plan on fixing it in the next 5-years

If your ARV is only $315k, you have little equity unless you are accelerating debt paydown somehow.

You will have lender fees. Get the exact figure from your lender.

5.5% is rare unless you have an 850 credit score, perfect DTI, and abundant income. If you can get 5.5% on a property like this, I'd lock it in.

Management is impossible to select until you have picked and vetted a firm- while it is an operating expense, you're likely going to pay from GOI...so assume closer to 12% NOI

Your vacancy is pretty low, but it's all relative here...I would at least set aside 1-2 months gross rent for an unexpected turnover

If you can insure a 4-unit property for $150/mo. you have an awesome agent

Assuming 50% of your income will go to OpEX is pointless. If this is a well run 20-yr old property, you'll be closer to 30-35% (again, another flaw with this calculator)

Overall, I think you're inflating the ROI and underestimating expenses.