Hello all, new to the forums and just wanted to use the experts here as a sounding board for the deal I'm working. This is my first investment property; up to this point I was all about investing in the stock market but I saw the light after reading Rich Dad Poor Dad!
So the property is a duplex built in 1997 (great condition) in Colorado Springs, total sq ft 2,804 with both units being 2bd/2bath w/ 2 car garage and great views of the mountain and Pikes Peak. Projected numbers below, can anyone double check to see if I'm overlooking something?
Sale price: $437,500
Conventional loan w/ 25% down, closing costs, etc.: $112,927 so loan total is $328,125 @ 5.125% = $2,076/mo
Rents are $1,425 and $1,450 (soon to be $1,500) for a total of $2,925/mo and tennants pay all utilities
Property tax $1,358/yr
So taking into account 8% vacancy, $1000/yr maintenance, property tax, insurance costs, and no prop mgmt, I'm projecting around $600/mo in cash flow.
After listening to around 100 BiggerPockets podcasts, I almost feel like I'm overlooking something in the projection because so many people realize around $200/mo cash flow. Can anyone do a sanity check on this for me? Thanks!
