Can you check my work?

[Collin Savunen]

I found a potential deal in Spanaway Washington. I am not moving on deals. I am doing the "run 100 deals before you start sending out offers" practice. I was a marksmanship coach and thoroughly believe for every round you fire you should dry fire at least 10 notional rounds. On to the deal. Duplex recently renovated and had a fire. $219,000 pp (that is asking price, I understand I should negotiate) $ 60,000 repair cost (1/3 the duplex burned down to the foundation. the other 2/3 was cleared structurally and livable) $275,000 resale (based weighted on a comp, same size, same quality 2 blocks away in a similar neighborhood as well as lightly on the few others in the area I could find) $279,000 $ 2,500 rental income /month ($1250/unit) $ 125 maintenance/month $ 125 capx/month $ 125 prop. Management/month $ 1,540 piti. (.5% insurance, $3,083 annual taxes) $ 1,915 Total monthly expenses $ 585 cash flow Even if I could only get it at market value would it be a good deal? Are my numbers right? Am I missing anything?

[John Leavelle]

Howdy @Collin Savunen

You did not include anything for Vacancy.  Recommend at least 8% (8.34% is equal to one month rent).  

Also, why is your Mortgage Amount $279K If Purchase price is $219K?  You did not indicate any down payment, why?  Why are you including the Repairs in with the Mortgage?