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Real Estate Deal Analysis & Advice

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Michael Brown
  • Investor
  • Brunswick, ME
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Duplex Analysis with Seller Financing

Michael Brown
  • Investor
  • Brunswick, ME
Posted Mar 26 2015, 18:12

Hi BPer's,

I am looking at possibly purchasing a duplex property as my first buy and hold, would you give me your feedback on this SELLER FINANCED analysis?

Listing Price: $122,900

Closing Cost (6 months of taxes and insurance): $1,800

Repairs: $2,000

ARV: $110,000 +/-

Amortized: 30 years

Offering:

Offer Price: $91,000 (MAO: $95,000)

Down payment: $13,650 or $14,250 (15%)

Loan Amount: $77,350

Interest: 5%

Interest only payment (for 3 years): $322.29 (at offer price); $336.46 (at MAO)

Balloon at 3 years: $77,350 (at offer price) $80,750 (at MAO)

Income:

Gross Annual: $18,900

NOI: $7,189

Note: Rent in one unit will eventually be raised by $75/month

Expenses:

Vacancy: 5% (this is a high demand rental area)

CapEx: 10%

Repairs: 10%

Management: 14% (will self manage at first)

Taxes: $2,600 annually

Insurance: $1,000 annually

Grounds maintenance: $600 annually (property is on a 0.07 Acre lot with almost not lawn. Most of the $600 will go to plowing in the winter)

All utilities paid by tenants

Thank you for taking the time to share your thoughts! I really appreciate it.