Feedback on my analysis

[Ethan McRae]

If I could just get some feedback on this analysis/opinions on whether or not its a worthy investment, please let me know. The property is in Lynn, MA- which is close to Boston. 

I know the roi doesn't look super appealing, BUT I believe my numbers are pretty conservative. For instance, I don't believe that 15% rent will go to capx and repairs every month. That being said, if it can barely cash flow with conservative hypothetical numbers, I believe it can do well in real life. Also hopefully I can lose the PMI once enough equity is built.

Thanks!

[Aaron K.]

@Ethan McRae my point is actually that your numbers may not be as conservative as you think.  For example your property taxes are about 1% of purchase price even, which may or may not be appropriate for the area, in the lower tax areas I work with in CA you'd need to add at least .10% in a best case scenario, but again I'm not familiar with MA.  Also in MA you need to think about the heating bill in the winter time if that is something you'll be paying as well, and I don't see that accounted for anywhere.  Utilities at $138 per month for both water and electric for 3 families could be optimistic as well, but again that takes digging into your local utility to know for sure, I wouldn't base a purchase decision off of just an estimate like that.  If it is a single meter and you have tiered electricity rates that electric bill would be significantly more expensive than for 3 families in 3 separately metered units.