Hey everybody! Just a quick question for you guys. I'm looking at a property that has 5 units. It's monthly income is $2,475. Asking price is 150k. I like that it's well above the 1% rule. I'm still waiting to get the rent roll and monthly expenses report to verify the income and operating costs. Tenants pay all utilities. I'm estimating monthly expenses to be around $600-$700/month (hopefully that's high). So, if I can't get the property for less than 150k, I'll be putting down 30k (20%), estimating loan at 120k, with a 6% interest rate. I'm estimating it high because I'm not sure what rate I'll get yet. I should be finding out tomorrow. PM is 8% per door which comes to $198/ month. NOI is $1,677 with a estimated loan payment of $720/month. After all these numbers, estimated cashflow is $957.54. 13.42% CAP rate and 38.30% CoC return. The numbers look good so far. I just need help trying to figure out how to calculate vacancies.
