Is this a good deal? (New york)
My partner and I are new to the real estate game and just put an offer in on a duplex and wanted to know what some of you more experienced investors thought or if we were missing anything.
This will be a student rental.
99,000$ agreed upon price
(comps in area in the 120-140k range)
2,000$ in repairs
estimated closing costs 5,000$
25% down 24,750$
interest rate 30 year fixed at 3.5%
taxes 5,417$
insurance 700$ yearly
Property management 20% (in our area they charge 10% but we put another 10% to factor in repair costs, vacancys or an "emergency fund"
Utilities 400$/month
4 units at 550$/month or 3,300$ per semester
2,200 total gross from rent/month
total monthly expenses(mortgage,insurance,& utilities) 1,776$
net operating income 5,078
cash flow 423.20$/month
ROI = 16%
Thoughts? are we missing anything? Thanks!