Grand Slam or Math Mistake?

[Harrison Lopes]

Hello BP Community,

Brandon Turner often says on his webinars that +$100/unit is a base hit, +$200/unit is a home run, and +$300/unit is a grand slam. I love that rule of thumb so much, I actually have it posted on my wall! I was also curious to see how one of my properties compared to this rule of thumb/analogy.

In 2014, I purchased a duplex for cash and renovated it. I've been renting both units out pretty steady and am sharing last month's numbers below. Based off Brandon's rule of thumb, I'm hitting well over a home run...almost a grand slam (perhaps a 2-run homer?). My instinct is this might be too good to be true...but perhaps I've lucked out and done a solid job on this property... 

If any of you are up for it, I'd like for you to check out my numbers and let me know if you believe I am making errors via underestimating some expenses or if I'm missing any expenses.

Any feedback would be greatly appreciated. 

Unit #1

Rental Income: $950.00

Mgmt Fee: ($66.50)

Electricity: TENANT PAYS

Unit #2

Rental Income: $675.00

Mgmt Fee: ($47.25)

Electricity: ($21.72)

Combined Expenses

Gas: ($70.46)

Water: (98.15)

Property Tax: (78.42)

Insurance: (100.83)

Save for Income Tax: ($260.21) [I take the profit up to this point, and multiply it by -.25. Yes, super conservative, but I rather have a surplus at the end of the year :)]

Save for Capital Exp: ($150.00) [Ballpark figure using Brandon's The Book on Rental Property Investing, Chapter 5)

Save for Repairs: ($162.50) [10% of income]

Save for Vacancy: ($104) [Income multiplied by -.064, the vacancy rate of the city]

CASHFLOW: $464.96 = $232.48/unit

So there you have it thanks for taking the time to read a long post. Am I truly in home run/grand slam territory? Am i missing an expense or underestimating some of my "save for" items?

Sincerely,

Harrison