First investment - Duplex in Phoenix
Just purchased my first rental property and wanted to share the financials. Feeling pretty positive about the purchase. The maintenance estimate might be low but I have lots of wiggle room.
Purchase price: 106000
Closing costs: 1150
Down payment: 26500 (25%)
Interest rate: 5.125%
Year built: 1957
Expenses (annual)
Taxes: 480
Insurance: 578
Maintenance: 1000
Water/sewer/trash: 1317
Property Mgmt: 1350 (10% gross)
Income (first year)
Gross Rent: 15000 (625/unit/month)
Vacancy rate: 10%
Vacancy loss: 1500
Total expenses: 4725
NOI: 8775
Cap rate: 8.19%
Mortgage payments: 5194
Cash flow: 3581 (149/unit/month)
Cash ROI: 12.95%
Equity accrued: 1148
Total return: 4729
Total ROI: 17.1%