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Douglass Belt
  • Investor
  • Madison, WI
10
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97
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Duplex-Madison...am I on the right track?

Douglass Belt
  • Investor
  • Madison, WI
Posted Jan 27 2015, 14:54

Duplex for sale $220K, each unit is 2Br, 1 bath. $1100/month per unit. Taxes $5600/year. As I understand it, this would fit the 1% rule, however, not sure if the numbers work. 

  • assuming 30 year mortgage @ 4% PITI =$1589/month. Tenant to pay utilities, trash, lawn/snow removal.
  • Principle= $302/month
  • Interest =$696/month
  • Taxes & Insurance =$592/month

looks like $2,200-$1,589= $600/month in cash flow.

Yearly capex needed $2,000 according to owner. All mechanicals, roof, etc are less than 5 years old. 2 gas ranges and washer/dryer may need to be replaced in next 5 years.

Easy to rent as close to capital, university, etc.

What do you think? Also, I am sure I may be missing some information, so please let me know. This is the first analysis I have posted. THanks!

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