Detroit Duplex Deal!

[Jordan Mantel]

Hi guys!

Just wanted to get some insight on this deal I just got accepted as my first!

It’s a duplex in the Morningside/East Indian Village neighborhood in Detroit, Michigan.

Purchase price: $73,000 (pending appraisal)

- 25 % down at 4.5 interest rate but with 3 points (I’m being told I’m going to get charged an extra point or two for the small amount of the loan)

Expenses:

Mortgage= $287

Property taxes= $125 monthly

Insurance= $100 monthly

Repairs= 7%

Cap ex= 7%

Water= $50 (I’m almost certain tenants will pay)

Property management= $150 a month

Other expenses= $50 a month

Total income= $1400-1500

Total cashflow= roughly $350 per month

All insight is greatly appreciated!