Duplex to Triplex in Seattle.

[Alain Defrance]

Hey guys,

I have a potential duplex in the Seattle area (so fairly appreciating) that I consider doing an offer with these numbers:

PURCHASE PRICE: $350,000
Purchase Closing Costs $8,000.00
Estimated Repairs $0.00
Total Project Cost $358,000.00
After Repair Value $350,000.00
Down Payment $87,500.00
Loan Amount $262,500.00
Loan Points $0.00
Amortized Over 30 years
Loan Interest Rate 5.000%
Monthly P&I $1,409.16
Total Cash Needed $95,500.00

MONTHLY INCOME: $2,500.00
MONTHLY EXPENSES: $2,365.16
MONTHLY CASHFLOW: $134.84
CASH ON CASH ROI: 1.69%
PURCHASE CAP RATE: 5.29%

This property could be converted into a triplex with a garage turned into an unit with full rent price but this is numbers as a duplex.

Cash on cash is really low but as a triplex I get a bit over 8% ROI which is I find pretty impressing in a market like Seattle, any thoughts?