Duplex Analysis

[Timothy Gregoire]

Property specifics:
List Price 225,000
25k down
Financing 200k @ 4.5% 30yr fixed
2x 3Br 1Ba
Rent 1300 (both currently rented)

Rental Income (Annual) 31,200
Vacancy -2%
Total operating expenses 8500 (Taxes, Insurance, property mgmt.)
NOI 22 ,700

CAP rate 10%
Cashflow Assets 5%
Cashflow Initial Investment 44%
LTV 89%

What am I missing?
Is this a deal or no deal?

[Ned Carey]

What yo are missing is your expenses are likely to be higher, perhaps significantly higher.

Based on the 50% rule (search here lots of threads on the subject) your expenses would be $15,600 and you NOI would be $15,600. That is a big swing from your numbers. It is still respectable with a solid debt coverage ratio and Cash on cash return.

Do you know you can get a loan with that down payment or are you guessing /assuming? Good luck - Ned