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Updated over 4 years ago,

User Stats

17
Posts
3
Votes
Austin V Nguyen
  • Conroe
3
Votes |
17
Posts

Am I doing my rental analysis right?

Austin V Nguyen
  • Conroe
Posted

Hello I am currently a 21 year old trying to practice doing rental analysis on rental properties mostly on duplexes and some SFH. I found a multi-family home on homes.com and here is the link. https://www.homes.com/property... I did an analysis with the bigger pockets rental calculator and it says the monthly cash flow is $730 a month and the COC ROI is 4.87%. This doesn't seem right because I watch Brandon Turners real estate videos and the COC roi should usually be in the 8% - 12% range, but 12% is where you should be aiming for. How is it that the monthly cash flow is so high, but the COC roi is so low? am I calculating something wrong? Here is what I put in the calculator -

- 20% down of $220,000 so my down payment is $44,000 

- Purchase closing cost of $4,000 

- The mortgage rate of 4% with a 30-year term loan 

- Property management fee of 10% a month 

- The rent charged for a month $1,650 

- Property tax $220 a month 

- Insurance $77 a month 

- Repairs maintenance a month 5% 

- Vacancy rate a month 5% 

- Capital Expenditure rate a month 5% 

- The tenants will pay electricity, sewer, gas water, HOA fees, and garbage

Can someone tell me If I miscalculated something or did something wrong? It is a duplex property in Houston, tx with 4 bedrooms

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