St Paul Househack Analysis

[AJ Smith]

Property Address	588 Lawson Ave E, STP 55130
MLS#	5610704
Number of Units (Duplex, Triplex, 4plex)	2
Crime Rating (Low/Medium/High)	Medium
Property Listing Price	$ 249,900.00
Rehab Needed? (None/Light/Medium/Heavy/Full)	None
Square Footage	1,920

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MINIMUM Down Payment Required for Purchase (5%)	$ 12,495.00
Conventional Loan Amount (Total - Down payment)	$ 237,405.00

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Utilities (Varies by Property)
Electricity
Water & Sewer		100.00
Garbage		60.00
Shoveling/Lawn Care		140
Total		$ 300.00

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FULL OCCUPANCY CASH FLOW
Est. Monthly Rent (using www.myrentrates.com)	$ 2,480.00
1% Rule (Rent should be 1% of Purchase + Rehab)	$ 2,499.00
Does this PASS the 1% Rule?	NO
Reserves Vacancy (%) 5.00% $ 124.00 Repairs & Maintenance (%) 7.00% $ 173.60 CapEx (%) 7.00% $ 173.60 Management Fees (%) $ - Total $ 471.20
Est. Monthly Payment (PITI + PMI) - Mortg. Calculator	$ 1,600.88
Est. Monthly OpEx (PITI + PMI + Utilities + Reserves)	$ 2,372.08
Est. Monthly Cash flow (Rent - OpEx)	$ 107.92
CoCRoI	10.4%

HOUSEHACKING CASH FLOW
Est. Monthly Rents	$ 1,902.50
1% Rule	$ 2,499.00
Does this PASS the 1% Rule?	NO
Est. Monthly Payment	$ 1,600.88
Est. Monthly OpEx	$ 2,372.08
Est. Monthly Cash flow	$ (329.58)
CoCRoI	-31.7%

Deal would pass muster ($100/door) if I lowered reserves to 15% instead of 19%, but trying to be more conservative with my reserves, so this deal is a no go for me.