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Updated about 6 years ago on . Most recent reply
[Calc Review] Help me analyze this deal
*This link comes directly from our calculators, based on information input by the member who posted.
@Brian Dennis
You forgot some stuff in your calculations but I can see right away this has the potential to be a cash cow . I’d get an inspector in there and if it truly only needs that much rehab it’s a no brainer to buy
the numbers dont quite make sense. 2% for capex ? Vacancy? PM? how sure are you about the 10k repairs?
When I first looked at the numbers and the rules of thumb (50% rule and 2% rule) this property looks to check out. I then looked at cash on cash ROI and Monthly Cash flow and those two both seemed way to high. The reason is because you left a lot out in your expenses. The most glaring error in the calculation was $29.95 for Capex. You should be saving a lot more for that, (look at Capex (roof, concrete, etc) prices in your area to get the correct estimate here). Also you should be saving more for repairs. Be conservative with your numbers. And as Charles Mitchell mentioned you forgot to include Property management fees and vacancy. There are a few more expenses to add. Even with that said with an initial look at the numbers this looks to be a property to further investigate.
@Dennis M. Thanks for reviewing the deal.
@Charles Mitchell thanks for taking a look. The 10k repair is on the 2nd unit of the duplex. The first unit is 100% completed. Both central heat and air system have been checked. It has a metal roof. Also we plan to PM our selves.
@Dennis M. What expense percentage do you recommend for PM, vacancy, Capx and repairs ?
@Charles Mitchell What expense percentage do you recommend for PM, vacancy, Capx and repairs ?
@Calvin Raab What expense percentage do you recommend for PM, vacancy, Capx and repairs ?
Vacancy 8%
Repairs 8-10
Capex 8-10
A lot depends on its current condition
How old the roof water tanks plumbing hvac etc is