From the BiggerPockets Blog

 BiggerPockets Blog »

Jump to Forum View All

Click a category below to view different forum categories.

BiggerPockets

General Info

BiggerPockets Q&A, Site Questions, & Announcements

1517 topics, 14412 posts — Last Post 04/21/14, 03:49AM

BiggerPockets Exclusive PRO Area

118 topics, 842 posts — Last Post 04/20/14, 04:40PM

New Member Introductions

10910 topics, 85882 posts — Last Post 04/21/14, 06:08AM

Real Estate Success Stories

396 topics, 6166 posts — Last Post 04/20/14, 09:40PM

General Real Estate

General Real Estate

Buying & Selling Real Estate

5954 topics, 46929 posts — Last Post 04/21/14, 05:49AM

Renters

645 topics, 5825 posts — Last Post 04/20/14, 07:48PM

Get Foreclosure Help - Help Stop Foreclosure Forum

316 topics, 2557 posts — Last Post 04/16/14, 03:58AM

Home Owner Association (HOA) Issues & Problems Forum

237 topics, 1609 posts — Last Post 04/17/14, 08:53AM

Do it Yourself

657 topics, 6296 posts — Last Post 04/20/14, 07:04PM

Reviews & Feedback

Real Estate Deal Analysis and Advice

3688 topics, 29570 posts — Last Post 04/21/14, 05:54AM

Real Estate Guru, Book & Course Reviews and Discussions

1135 topics, 11565 posts — Last Post 04/20/14, 08:31PM

Ask About A Real Estate Company

741 topics, 7327 posts — Last Post 04/20/14, 05:47PM

Real Estate Investing

Real Estate Strategies

Wholesaling

5612 topics, 43783 posts — Last Post 04/21/14, 05:51AM

Rehabbing and House Flipping

3336 topics, 31023 posts — Last Post 04/20/14, 10:33PM

Real Estate Development & New Home Construction

554 topics, 4687 posts — Last Post 04/20/14, 10:21PM

Innovative Strategies

704 topics, 6031 posts — Last Post 04/21/14, 05:34AM

Tax Liens, Notes, Paper, & Cash Flows Discussion

866 topics, 6678 posts — Last Post 04/19/14, 06:06AM

Rent to Own a.k.a. Lease Purchase, Lease Options

695 topics, 4909 posts — Last Post 04/20/14, 05:32PM

1031 Exchanges

143 topics, 1054 posts — Last Post 04/18/14, 08:41AM

Foreclosure Investing

General Foreclosure & Pre-Foreclosure Forums

1689 topics, 11303 posts — Last Post 04/21/14, 05:59AM

HUD, VA, and Tax Sales

415 topics, 3097 posts — Last Post 04/19/14, 10:19PM

REOs

1214 topics, 10578 posts — Last Post 04/20/14, 12:34AM

Short Sales

1535 topics, 13121 posts — Last Post 04/20/14, 02:17PM

Landlord & Tenant Forums

Landlord & Rental Property Questions

7219 topics, 70873 posts — Last Post 04/21/14, 06:08AM

Mobile Homes & Mobile Home Park Investing

638 topics, 5142 posts — Last Post 04/20/14, 08:42PM

Investor Basics

Starting Out

7712 topics, 60536 posts — Last Post 04/21/14, 06:04AM

Investor Psychology

431 topics, 6107 posts — Last Post 04/20/14, 06:04AM

General Real Estate Investing

4721 topics, 37236 posts — Last Post 04/21/14, 06:03AM

Real Estate Investor Marketing

1733 topics, 14101 posts — Last Post 04/21/14, 06:01AM

Commercial Real Estate

Commercial Real Estate Investing Forum

1410 topics, 8994 posts — Last Post 04/19/14, 04:34PM

Multi-Family and Apartment Investing

1111 topics, 9255 posts — Last Post 04/20/14, 09:00PM

The Business of Real Estate

Real Estate Technology and the Internet

Real Estate Technology, Social Media & Blogging

641 topics, 4898 posts — Last Post 04/21/14, 04:07AM

Business Basics

Goals, Business Plans & Entities

831 topics, 7563 posts — Last Post 04/21/14, 12:26AM

Real Estate Finance & Legal

Financial, Tax, and Legal

Tax, Legal Issues, Contracts, Self-Directed IRA

2790 topics, 20034 posts — Last Post 04/20/14, 10:23PM

Property Insurance

309 topics, 2045 posts — Last Post 04/17/14, 07:41PM

Personal Finance Discussion

328 topics, 2732 posts — Last Post 04/19/14, 06:57PM

Loans, Mortgages, Credit Lines

Private & Conventional Lending Discussion

2838 topics, 19721 posts — Last Post 04/21/14, 05:59AM

Creative Real Estate Financing

1210 topics, 8772 posts — Last Post 04/20/14, 06:59AM

Crowdfunding Real Estate

35 topics, 463 posts — Last Post 04/19/14, 06:24PM

Real Estate Professionals

Real Estate Professionals

Real Estate Agents

1211 topics, 7999 posts — Last Post 04/20/14, 03:12PM

Bankers, Lenders, and Mortgage Brokers

441 topics, 1922 posts — Last Post 04/20/14, 07:09AM

Contractors

270 topics, 1686 posts — Last Post 04/21/14, 04:10AM

Local Real Estate

Local Real Estate

Local Real Estate Networking & Recommendations

1994 topics, 11629 posts — Last Post 04/21/14, 03:42AM

Americans & International Real Estate

161 topics, 566 posts — Last Post 04/14/14, 11:19AM

Foreigners Buying in the USA

62 topics, 409 posts — Last Post 04/10/14, 06:27AM

Canadian Real Estate

65 topics, 431 posts — Last Post 04/21/14, 06:08AM

Marketplace

Real Estate Marketplace

Real Estate Marketplace

15029 topics, 53977 posts — Last Post 04/21/14, 05:40AM

Real Estate Events and Happenings

165 topics, 2545 posts — Last Post 04/21/14, 04:39AM

Off-Topic

Off Topic

Off-Topic

2906 topics, 32423 posts — Last Post 04/19/14, 08:03AM

Housing News & Real Estate Market

914 topics, 8351 posts — Last Post 04/17/14, 08:41AM

BiggerPockets Real Estate Investing Summit

97 topics, 1751 posts — Last Post 04/10/14, 02:27PM

BiggerPockets Resources

Forums » Landlord & Rental Property Questions » Help analyze first deal-Duplex

Help analyze first deal-Duplex

4 posts by 3 users

Signup

Real Estate Investor · Latonia, Kentucky


We're looking at a duplex of 2/1s that are rented currently for $450 with 6 months left and $480 month to month. Overall the building is in great shape, with the only major maintenance issue that I can see is that the roof looks at least half way through its life.

It's listed for $49,500 but has been on the market over a year likely due to comps. (Not many duplexes selling above 35K in the West Price Hill area of Cincinnati.) The max we'll pay is $35,000. Financing will be 30% down ($10,500), 6% for 15 years with a payment of 206.74

Expenses monthly are:
-Taxes $115.66 currently
-Insurance $52.25
-Maintenance (10% of rent) $93
-Utilities ($50 per quarter, per unit for water and sanitation) $33.33
-Management (10% of rent) $93
-Vacancy (10% of rent) $93

Once I take my expenses and debt service from my gross rent, I'm left with $243.01 cash flow for a 27.77% COCR. If I understand correctly, my NOI is $5397 for a CAP rate of 15%.

Looking forward, I should be able to reduce the taxes to about $800 with a revaluation and market rent for 2/1s is about $550. These units are nicer than most in a little nicer area and they have AC, so I think higher rents might be justified.

Let me know what you think.



Residential Landlord · Lima, Ohio


Your numbers look fine Mike. How are you financing this and where in Cinci is this exactly - I lived in Cinci for 7 years. good luck


Small_logo_03Ben Leybovich, JustAskBenWhy.com
E-Mail: [email protected]
Telephone: 1.888.508.9643
Website: http://www.JustAskBenWhy.com
Ben Leybovich, Syndicator / Creator of Cash Flow Freedom University http://www.JustAskBenWhy.com


· Apopka, Florida


The numbers look good. However for your first deal, are you up to managing a cheap duplex in Price Hill?

Cash flowing deals are easier to find in tough areas, but it takes a special type of landlord to profit in such areas. Tests can come when you least expect them.

But I seem to recall that East PH was worse than WPH. But I could be out of date since I left Northern KY several years ago.



Real Estate Investor · Latonia, Kentucky


I appreciate your feedback. I'm financing through a local portfolio lender. The building is actually in great shape and is in a nice part of West Price Hill. I also think I'm up to the challenge as I'm very familiar with low income folks through my job. East Price Hill is a worse, but it's hit and miss all over. I'll also be using a local property management company to handle the day to day stuff.





Sign up